Canadian Utilities (TSE:CU) Reaches New 12-Month High - What's Next?

Key Points

• Canadian Utilities hit a new 52-week high (intraday C$49.48, last C$48.76) while several banks raised price targets recently, but the stock still carries a consensus rating of Hold with an average target of C$45.83.
• Key fundamentals show a very high valuation and leverage — a P/E of 325 and debt-to-equity of about 195% — alongside modest quarterly results (C$0.72 EPS, C$971M revenue) and low return on equity, highlighting valuation and balance-sheet risks.

Canadian Utilities Limited (TSE:CU - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as C$49.48 and last traded at C$48.76, with a volume of 417637 shares. The stock had previously closed at C$49.19.

Analyst Upgrades and Downgrades

A number of analysts recently commented on CU shares. Scotiabank increased their price objective on Canadian Utilities from C$40.00 to C$43.00 in a research note on Tuesday, December 16th. National Bank Financial boosted their target price on shares of Canadian Utilities from C$43.00 to C$45.00 and gave the company a "sector perform" rating in a research note on Friday, February 27th. Canadian Imperial Bank of Commerce upped their target price on shares of Canadian Utilities from C$45.00 to C$47.00 and gave the company a "neutral" rating in a report on Friday, February 27th. Royal Bank Of Canada raised their price target on shares of Canadian Utilities from C$43.00 to C$49.00 and gave the stock a "sector perform" rating in a research note on Friday, February 27th. Finally, TD Securities lifted their price target on shares of Canadian Utilities from C$41.00 to C$47.00 and gave the stock a "hold" rating in a report on Tuesday, March 3rd. Four investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of C$45.83.

Canadian Utilities Stock Performance

The firm has a market cap of C$13.27 billion, a PE ratio of 325.07, a P/E/G ratio of 2.38 and a beta of 0.66. The company has a debt-to-equity ratio of 194.86, a current ratio of 1.56 and a quick ratio of 1.30. The stock has a 50-day moving average price of C$45.60 and a 200 day moving average price of C$42.18.

Canadian Utilities (TSE:CU - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported C$0.72 EPS for the quarter. Canadian Utilities had a return on equity of 1.74% and a net margin of 3.22%.The firm had revenue of C$971.00 million during the quarter. Research analysts forecast that Canadian Utilities Limited will post 2.4063556 earnings per share for the current year.

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.

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