TransAlta (TSE:TA) Given New C$23.00 Price Target at National Bank Financial

Key Points

• National Bank Financial cut its TransAlta price target to C$23 from C$24 but maintained an “outperform” rating, implying 20.55% upside from the share price at the time.
• Analyst sentiment remained positive overall: the stock had a consensus “Buy” rating and a C$24.50 average price target.
• TransAlta reported Q3 adjusted EPS of C$0.18, above the C$0.07 consensus, and swung to C$63 million in net income from a loss a year earlier; however, quarterly revenue declined.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC had its price objective cut by analysts at National Bank Financial from C$24.00 to C$23.00 in a research note issued on Wednesday, BayStreet reports. The brokerage currently has an "outperform" rating on the stock. National Bank Financial's price target points to a potential upside of 20.55% from the company's current price.

Separately, Canadian Imperial Bank of Commerce decreased their target price on shares of TransAlta from C$26.00 to C$24.50 in a research report on Tuesday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus price target of C$24.50.

TransAlta Stock Performance

Shares of TSE TA traded up C$0.56 during midday trading on Wednesday, hitting C$19.08. 2,483,376 shares of the stock traded hands, compared to its average volume of 1,708,215. The firm has a market capitalization of C$6.04 billion, a P/E ratio of -61.55, a PEG ratio of -0.07 and a beta of 0.31. The company has a debt-to-equity ratio of 238.01, a quick ratio of 0.61 and a current ratio of 0.84. TransAlta has a one year low of C$15.62 and a one year high of C$24.05. The firm has a 50-day moving average of C$17.44 and a two-hundred day moving average of C$17.98.

TransAlta (TSE:TA - Get Free Report) NYSE: TAC last released its earnings results on Tuesday, November 3rd. The company reported C$0.18 earnings per share for the quarter. The company had revenue of C$536.00 million for the quarter. TransAlta had a negative return on equity of 1.50% and a negative net margin of 1.02%.

Insiders Place Their Bets

In other news, insider Michael Politeski bought 5,000 shares of TransAlta stock in a transaction that occurred on Tuesday, September 15th. The stock was bought at an average price of C$16.02 per share, for a total transaction of C$80,100.00. Following the purchase, the insider directly owned 90,000 shares of the company's stock, valued at approximately C$1,441,800. The trade was a 5.88% increase in their position. Corporate insiders own 0.21% of the company's stock.

Key Stories Impacting TransAlta

Here are the key news stories impacting TransAlta this week:

• Positive Sentiment: TransAlta reported Q3 adjusted EPS of C$0.18, above the C$0.07 consensus, and net income of C$63 million versus a C$62 million loss a year earlier. The company said fleet optimization efforts are continuing. TransAlta reports Q3 adjusted EPS 18c, consensus 7c TransAlta reports $63M Q3 profit compared with $62M loss a year ago
• Neutral Sentiment: A proposed Parkland County data centre, called the Boreal Technology Hub, could require up to 1.6 GW of power. TransAlta is gathering community input, so the project could create substantial future electricity demand but remains uncertain and is not a confirmed near-term revenue source. TransAlta gathering community input on potential new Parkland County data centre
• Neutral Sentiment: The company is targeting $110 million in annual adjusted EBITDA from its Colorado acquisition; this is a forward-looking target rather than reported performance. TransAlta anticipates Boreal Technology Hub load up to 1.6 GW while targeting $110M annual adjusted EBITDA from Colorado acquisition
• Negative Sentiment: Despite the earnings improvement, quarterly revenue fell, tempering the positive profit and EPS results. Correction: TransAlta Swings to Q3 Adjusted Net Earnings, Revenue Falls

TransAlta Company Profile

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power and Alberta's largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live.

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