Canadian Utilities (TSE:CU) Upgraded to “Strong-Buy” at TD Securities

TD Securities upgraded shares of Canadian Utilities (TSE:CU) from a hold rating to a strong-buy rating in a report issued on Wednesday morning,Zacks reports.

A number of other analysts also recently commented on the company. Canadian Imperial Bank of Commerce dropped their price objective on Canadian Utilities from C$55.00 to C$52.00 in a research note on Tuesday, September 22nd. TD raised their target price on Canadian Utilities from C$52.00 to C$57.00 and gave the company a “buy” rating in a research note on Wednesday. Royal Bank Of Canada lifted their target price on Canadian Utilities from C$50.00 to C$58.00 and gave the stock a “sector perform” rating in a report on Thursday, July 30th. Scotiabank boosted their price target on shares of Canadian Utilities from C$50.00 to C$53.00 and gave the stock a “sector perform” rating in a research report on Tuesday, July 21st. Finally, National Bank Financial increased their target price on shares of Canadian Utilities from C$51.00 to C$55.00 and gave the company a “sector perform” rating in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Canadian Utilities has an average rating of “Hold” and an average price target of C$53.86.

Canadian Utilities Price Performance

TSE CU opened at C$49.85 on Wednesday. Canadian Utilities has a 12 month low of C$38.51 and a 12 month high of C$56.90. The company has a debt-to-equity ratio of 184.88, a current ratio of 1.80 and a quick ratio of 1.30. The firm has a market capitalization of C$13.58 billion, a PE ratio of 311.56, a P/E/G ratio of 2.38 and a beta of 0.36. The company’s 50 day simple moving average is C$51.88 and its 200 day simple moving average is C$51.07.

Canadian Utilities (TSE:CU) last announced its earnings results on Wednesday, July 29th. The company reported C$0.51 EPS for the quarter. The firm had revenue of C$914.00 million for the quarter. Canadian Utilities had a return on equity of 1.88% and a net margin of 3.30%. As a group, equities research analysts forecast that Canadian Utilities will post 2.4063556 EPS for the current fiscal year.

Key Headlines Impacting Canadian Utilities

Here are the key news stories impacting Canadian Utilities this week:

• Positive Sentiment: Emera’s proposed acquisition could provide Canadian Utilities shareholders with a premium and combine the companies into a much larger regulated-utility platform. Reports link the deal to a planned US$23 billion infrastructure program and expected growth in power demand from AI. Emera, Canadian Utilities to merge with USD-23bn infrastructure plan
• Positive Sentiment: TD raised its price target for CU from C$52 to C$57 and upgraded the shares to “buy,” implying approximately 15.3% upside from the quoted reference price. The upgrade suggests analysts see additional value beyond the recent rally. TD raises Canadian Utilities price target
• Neutral Sentiment: Canadian Utilities’ stock has risen roughly 95% over the past year, prompting discussion that it may continue trading at a premium. The strong run supports investor interest but also leaves the shares more dependent on a favorable transaction outcome and future earnings growth. Canadian Utilities stock may trade at a premium
• Negative Sentiment: Some analysis describes the logic behind Emera’s acquisition as unclear so far. Investors may remain concerned about valuation, integration, regulatory approvals, financing and whether the expected AI-related electricity demand will justify the transaction. Those uncertainties can weigh on CU even as the deal creates potential long-term growth. The logic behind Emera’s acquisition of Canadian Utilities

About Canadian Utilities

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company’s main divisions include electricity (generation, transmission, and distribution), pipelines & liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States and Mexico. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta.