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Algonquin Power & Utilities (AQN) Stock Forecast for 2024, 2025, 2026. Sell or Buy?
Updated: October 10, 2024 (07:44)
Sector: UtilitiesThe share price of Algonquin Power & Utilities Corp. (AQN) now
News Impact Analyzer
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Analysts predictions
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Neutral | Opinions: Na |
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Bullish | Opinions: 1 (1/0/0) |
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Neutral | Opinions: 1 |
Analyzing the Most Important AQN news
Algonquin Power & Utilities: Dividend Cut Looms Large
Warning: Algonquin Power's Dividend Faces Significant Cut Risk
Algonquin Power Faces Threat of Dividend Cuts – Caution Advised
Historical and forecast chart of Algonquin Power & Utilities stock
The chart below shows the historical price of Algonquin Power & Utilities stock and a prediction chart for the next month. For convenience, prices are divided by color. Forecast prices include: Optimistic Forecast, Pessimistic Forecast, and Weighted Average Best Forecast. Detailed values for the Algonquin Power & Utilities stock price can be found in the table below.
Long-term forecasts by years.
Algonquin Power & Utilities Corp. Analysts predictions review
As of now, Panda has combed through 2 analytical articles which are directly related to AQN from the last 30 days. Out of these, 1 clearly showcase a bullish trend, while 0 see a bearish trend as the more likely scenario, and 1 stay neutral.
To identify the dominant trend, we took into account analytical articles from the past 30 days, spanning from Sep 13, 2024 to Sep 28, 2024.
Algonquin's Big Shift: Doubling Down on Utilities Could Double Its Stock
In the latest review of the analytical financial article by Curonian Research, the author continues to maintain a bullish stance on Algonquin Power & Utilities Corp (AQN) stock, signaling confidence in the company's upward potential. With a prolific output of 59 publications since 2017 and a substantial following of 813 subscribers, Curonian Research demonstrates a robust commitment to delivering insightful financial analyses. The author’s well-regarded expertise and good credibility underscore the reliability of their evaluations, making their bullish perspective on AQN particularly noteworthy. Publishing consistently over the years reflects a steady engagement with the financial community, further bolstering the author’s respected standing. Readers can expect a well-considered and informed review grounded in analytical rigor and market insight.
Key Theses of the Article
- Algonquin is exiting its merchant power activities to focus on regulated utility operations, positioning itself for significant shareholder value creation.
- The utility sector is currently thriving due to factors like rising power demand, declining rates, and increased regulated revenues.
- Algonquin is trading at a significant discount to its peers, with strong potential for equity value appreciation.
- Past issues of mismanagement and high leverage are being addressed with the involvement of Starboard Value and strategic changes by Algonquin.
Factors Influencing AQN's Stock Price
Exit from Merchant Power Activities
By disposing of its renewable energy group and focusing on regulated utilities, Algonquin will de-risk its business model, leading to potential stock price gains as it simplifies operations and reduces debt.
Rising Utility Sector Demand
The increased power demand driven by factors like AI and legislative support (e.g., Inflation Reduction Act) enhances growth prospects for utilities, thereby positively influencing Algonquin's stock price.
Valuation Discount Relative to Peers
Algonquin's current valuation is significantly below its peers, providing substantial upside potential; as it aligns its asset base with industry standards, its stock price could double according to estimates.
Involvement of Starboard Value
Starboard Value's activist engagement is steering Algonquin towards improved management and value realization, which may restore investor confidence and positively impact the stock price.
Reduction of Debt and Leveraged Positions
The anticipated reduction of net debt by $2.8 billion post-renewable asset sales will strengthen Algonquin's balance sheet, positioning it more favorably in the market and enhancing stock performance.
Review the original Analysis
Algonquin Power: Debt Challenges Amid High-Quality Asset Potential
In this review, we delve into Bashar Issa's analytical examination of AQN stock, where the author adopts a Neutral stance on its current trajectory. With 349 publications to his name since joining in 2020, Issa's prolific output reflects a deep commitment to financial analysis. Boasting over 5,500 subscribers, his viewpoints resonate with a broad audience. His exceptional credibility, as evidenced by authoritative metrics, lends significant weight to his analysis, making his insights particularly valuable. This combination of prolific publishing and notable authority ensures that Issa's perspectives on AQN stock are both popular and trusted within the investment community. As we explore his neutral stance further, readers can expect a balanced and informed perspective that reflects Issa's esteemed standing in the field.
Key Theses
- Algonquin Power's financial struggles are largely due to historical low-margin power contracts without price escalators.
- Despite its high-quality assets, Algonquin's debt and low return on assets are its primary challenges.
- The company's future depends significantly on strategically monetizing its resources and improving its financial health.
- Interest rate hikes by the Fed exacerbated Algonquin's issues, but they are not the root cause.
Factors Influencing AQN's Stock Price
Debt Burden
Algonquin's significant debt of $8.3 billion with an interest expense of $353 million, which will only partially decrease with asset sales, strongly impacts investor perception and financial stability.
Interest Rates
Rising interest rates have increased Algonquin's debt servicing costs, diminishing net income and pushing financial metrics into the red, which can be detrimental to stock prices in the near term.
Asset Quality and Utilization
Although Algonquin has $18 billion of high-quality assets, their under-utilization and low return on assets averaging 4.4% limit profitability and subsequently depress stock value.
Regulatory Negotiations and Coverage
Negotiating better regulatory coverage offers potential upside but currently yields a low return of 4.4% due to limited recognition by utility commissions, impacting future profitability.
Sale of Unregulated Assets
The transformation into a pure-play regulated utility from asset sales may bring stability and reduce volatility, positively affecting stock prices over time as debt obligations are reduced.
Review the original Analysis
Commentary
Algonquin Power & Utilities Corp. is navigating a challenging terrain due to its substantial debt load, clocked at $8.3 billion, and the burden of increased interest rates. It's like navigating a river with a strong current—manageable, but demanding. The company’s stock performance feels this weight, as rising interest expenses further tighten profitability and investor confidence. Meanwhile, Algonquin’s under-utilization of its $18 billion of high-quality assets presents both a hurdle and an opportunity for growth.
Algonquin's future could take a brighter turn if it successfully executes the sale of unregulated assets to focus on becoming a pure-play regulated utility. This strategy may lead to reduced volatility and potential value appreciation, cushioning the stock from current pressures over a longer time horizon. Considering the average strength score of factors influencing the stock, the near-term outlook in the next 15 days remains on the cautious side, while we may inch towards modest improvements in a month's time. With these dynamics in play, investors might find themselves adopting a wait-and-see approach, explaining why the trend appears Neutral for now.
Comprehensive Analysis of Algonquin Power & Utilities (AQN) Stock Market Performance
Our multifaceted analysis of Algonquin Power & Utilities's stock market is grounded in the company's key news stories, insights from reputable analysts, as well as mathematical and technical evaluations. Taking into account assessments from each of these aspects in real-time helps us address the most crucial questions for investors in the most objective way possible:
- When should I take profit in Algonquin Power & Utilities stock?
- When should I record a loss on Algonquin Power & Utilities stock?
- What are analysts' forecasts for Algonquin Power & Utilities stock?
- What is the future of Algonquin Power & Utilities stock?
We forecast Algonquin Power & Utilities stock performance using neural networks based on historical data on Algonquin Power & Utilities stocks.
Algonquin Power & Utilities Corp. News influencing stock rates
As of now, Panda has combed through 0 news items directly related to AQN from the last 30 days. Out of these, 0 clearly showcase a bullish trend, while 0 display bearish tendencies, and 0 events are neutral.
The strength of the bearish trend is roughly equivalent to the bullish sentiment, indicating a certain current stability in stock prices when based on news background analysis.
The news analyzed fell within the period from Jan 01, 1970, to Jan 01, 1970.
Algonquin Power Hits YTD Low as Mixed Q2 Results Prompt Wells Fargo Downgrade
Algonquin Power & Utilities Slashes Dividend by 40% to $0.065
Algonquin Power Beats on EPS but Falls Short on Revenue
Algonquin Power to Divest Renewable Energy Segment for $2.5 Billion in Strategic Shift
Algonquin Power & Utilities Beats EPS Estimates, Misses Revenue in Mixed Q2 Performance
Algonquin Power & Utilities Q2 Earnings: Flat EPS Expected, Minimal Revenue Growth Forecasted
Alliant Energy is a holding of housing and communal services, consists of four subsidiaries. Two subsidiaries are involved in power generation and distribution, one in Iowa and the other in Wisconsin. Alliant Energy owns a portfolio of power plants that run on a variety of fuels such as coal, natural gas, and renewable resources. It is part of the S&P 500 Component Index.
The company was founded in 1917. These were originally Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL). IPL began in 1925 as an interstate energy company that was the amalgamation of several small utility companies.
Algonquin Power & Utilities daily forecast for a month
| Date | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Oct 12 | 5.04 | 5.03 | 5.06 | 0.68 |
| Oct 13 | 5.02 | 5.01 | 5.05 | 0.90 |
| Oct 14 | 4.99 | 4.98 | 5.01 | 0.65 |
| Oct 15 | 4.98 | 4.97 | 5.01 | 0.80 |
| Oct 16 | 4.97 | 4.96 | 4.98 | 0.47 |
| Oct 17 | 5.00 | 4.97 | 5.02 | 1.19 |
| Oct 18 | 5.02 | 5.00 | 5.03 | 0.60 |
| Oct 19 | 5.00 | 4.98 | 5.01 | 0.61 |
| Oct 20 | 4.99 | 4.98 | 5.00 | 0.54 |
| Oct 21 | 4.98 | 4.95 | 5.00 | 0.83 |
| Oct 22 | 4.94 | 4.92 | 4.97 | 0.96 |
| Oct 23 | 4.98 | 4.95 | 5.00 | 0.89 |
| Oct 24 | 4.96 | 4.94 | 4.98 | 0.79 |
| Oct 25 | 4.96 | 4.93 | 4.98 | 1.05 |
| Oct 26 | 5.00 | 4.97 | 5.03 | 1.14 |
| Oct 27 | 4.97 | 4.95 | 4.98 | 0.72 |
| Oct 28 | 5.01 | 4.97 | 5.02 | 1.08 |
| Oct 29 | 4.99 | 4.96 | 5.02 | 1.22 |
| Oct 30 | 4.96 | 4.94 | 4.98 | 0.85 |
| Oct 31 | 4.93 | 4.90 | 4.96 | 1.07 |
| Nov 01 | 4.95 | 4.93 | 4.97 | 0.99 |
| Nov 02 | 4.94 | 4.91 | 4.95 | 0.78 |
| Nov 03 | 4.95 | 4.93 | 4.97 | 0.88 |
| Nov 04 | 4.97 | 4.95 | 4.99 | 0.83 |
| Nov 05 | 5.01 | 4.98 | 5.04 | 1.24 |
| Nov 06 | 5.04 | 5.01 | 5.07 | 1.29 |
| Nov 07 | 5.04 | 5.03 | 5.06 | 0.62 |
| Nov 08 | 5.04 | 5.02 | 5.07 | 0.92 |
| Nov 09 | 5.04 | 5.02 | 5.07 | 1.04 |
| Nov 10 | 5.01 | 4.99 | 5.04 | 0.96 |
Algonquin Power & Utilities Daily Price Targets
Algonquin Power & Utilities Stock Forecast 10-12-2024.
Forecast target price for 10-12-2024: $5.04.
Positive dynamics for Algonquin Power & Utilities shares will prevail with possible volatility of 0.677%.
Pessimistic target level: 5.03
Optimistic target level: 5.06
Algonquin Power & Utilities Stock Forecast 10-13-2024.
Forecast target price for 10-13-2024: $5.02.
Negative dynamics for Algonquin Power & Utilities shares will prevail with possible volatility of 0.894%.
Pessimistic target level: 5.01
Optimistic target level: 5.05
Algonquin Power & Utilities Stock Forecast 10-14-2024.
Forecast target price for 10-14-2024: $4.99.
Negative dynamics for Algonquin Power & Utilities shares will prevail with possible volatility of 0.648%.
Pessimistic target level: 4.98
Optimistic target level: 5.01
Algonquin Power & Utilities Stock Forecast 10-15-2024.
Forecast target price for 10-15-2024: $4.98.
Negative dynamics for Algonquin Power & Utilities shares will prevail with possible volatility of 0.795%.
Pessimistic target level: 4.97
Optimistic target level: 5.01
Algonquin Power & Utilities Stock Forecast 10-16-2024.
Forecast target price for 10-16-2024: $4.97.
Negative dynamics for Algonquin Power & Utilities shares will prevail with possible volatility of 0.469%.
Pessimistic target level: 4.96
Optimistic target level: 4.98
Algonquin Power & Utilities Stock Forecast 10-17-2024.
Forecast target price for 10-17-2024: $5.00.
Positive dynamics for Algonquin Power & Utilities shares will prevail with possible volatility of 1.175%.
Pessimistic target level: 4.97
Optimistic target level: 5.02
AQN (AQN) Monthly Stock Prediction for 2024
| Month | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Nov. | 5.19 | 5.07 | 5.28 | 4.09 |
| Dec. | 5.31 | 5.18 | 5.42 | 4.47 |
Algonquin Power & Utilities forecast for this year
Algonquin Power & Utilities Stock Prediction for Nov 2024
An uptrend is forecast for this month with an optimal target price of $5.18914. Pessimistic: $5.07. Optimistic: $5.28
Algonquin Power & Utilities Stock Prediction for Dec 2024
An uptrend is forecast for this month with an optimal target price of $5.30538. Pessimistic: $5.18. Optimistic: $5.42
Algonquin Power & Utilities (AQN) Monthly Stock Prediction for 2025
| Month | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Jan | 5.36 | 5.27 | 5.53 | 4.70 |
| Feb | 5.36 | 5.29 | 5.46 | 3.07 |
| Mar | 5.21 | 5.16 | 5.38 | 4.11 |
| Apr | 5.32 | 5.23 | 5.47 | 4.55 |
| May | 5.34 | 5.18 | 5.41 | 4.26 |
| Jun | 5.32 | 5.17 | 5.40 | 4.33 |
| Jul | 5.24 | 5.16 | 5.35 | 3.45 |
| Aug | 5.20 | 5.09 | 5.36 | 5.00 |
| Sep | 5.21 | 5.05 | 5.37 | 5.94 |
| Oct | 5.31 | 5.23 | 5.43 | 3.71 |
| Nov | 5.49 | 5.33 | 5.60 | 4.90 |
| Dec | 5.59 | 5.46 | 5.68 | 3.86 |
Algonquin Power & Utilities (AQN) Monthly Stock Prediction for 2026
| Month | Target | Pes. | Opt. | Vol., % |
|---|---|---|---|---|
| Jan | 5.59 | 5.42 | 5.70 | 5.02 |
| Feb | 5.75 | 5.70 | 5.90 | 3.39 |
| Mar | 5.72 | 5.56 | 5.90 | 5.78 |
| Apr | 5.74 | 5.62 | 5.89 | 4.60 |
| May | 5.93 | 5.84 | 5.99 | 2.53 |
| Jun | 5.80 | 5.75 | 5.87 | 1.94 |
| Jul | 5.82 | 5.77 | 5.89 | 2.02 |
| Aug | 5.90 | 5.85 | 5.99 | 2.36 |
| Sep | 5.74 | 5.67 | 5.82 | 2.60 |
| Oct | 5.95 | 5.81 | 6.01 | 3.21 |
| Nov | 6.07 | 5.95 | 6.23 | 4.52 |
| Dec | 6.13 | 6.06 | 6.23 | 2.75 |
Algonquin Power & Utilities information and performance
354 DAVIS ROAD, OAKVILLE, ON, CA
Market capitalization of the Algonquin Power & Utilities Corp. is the total market value of all issued shares of a company. It is calculated by the formula multiplying the number of AQN shares in the company outstanding by the market price of one share.
EBITDA of Algonquin Power & Utilities is earnings before interest, income tax and depreciation of assets.
P/E ratio (price to earnings) - shows the ratio between the price of a share and the company's profit
Price/earnings to growth
Dividend Per Share is a financial indicator equal to the ratio of the company's net profit available for distribution to the annual average of ordinary shares.
Dividend yield is a ratio that shows how much a company pays in dividends each year at the stock price.
EPS shows how much of the net profit is accounted for by the common share.
Trailing P/E depends on what has already been done. It uses the current share price and divides it by the total earnings per share for the last 12 months.
Forward P/E uses projections of future earnings instead of final numbers.
Enterprise Value (EV) /Revenue
The EV / EBITDA ratio shows the ratio of the cost (EV) to its profit before tax, interest and amortization (EBITDA).
Number of issued ordinary shares
Number of freely tradable shares
Shares Short Prior Month - the number of shares in short positions in the last month.
Algonquin Power & Utilities (AQN) stock dividend
Algonquin Power & Utilities last paid dividends on 09/30/2024. The next scheduled payment will be on 10/15/2024. The amount of dividends is $0.434 per share. If the date of the next dividend payment has not been updated, it means that the issuer has not yet announced the exact payment. As soon as information becomes available, we will immediately update the data. Bookmark our portal to stay updated.
Last Split Date: 01/01/1970
Splitting of shares is an increase in the number of securities of the issuing company circulating on the market due to a decrease in their value at constant capitalization.
For example, a 5: 1 ratio means that the value of one share will decrease 5 times, the total amount will increase 5 times. It is important to understand that this procedure does not change the capitalization of the company, as well as the total value of assets held in private hands.
Commentary
Algonquin Power & Utilities is taking decisive steps to secure its place in the thriving utility sector, setting the stage for significant value creation. By shifting away from its volatile merchant power activities, Algonquin is embracing a more stable and promising path through regulated utilities. With factors like rising demand and strategic industry legislation supporting this transition, the company looks poised for a bullish trajectory.
When evaluating the influence of these factors on Algonquin's stock price, the average significance is high. In the short term, over the next 15 days, the streamlined focus and improved financial health from reduced debt should provide immediate upward pressure on the stock. Looking further into the coming month, the involvement of Starboard Value and resolution of past mismanagement issues will likely bolster investor confidence, solidifying a positive growth outlook. These shifts translate to a compelling buy strategy for investors keeping an eye on the utility sector's robust landscape.