Canadian Utilities (TSE:CU) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised its price target on Canadian Utilities to C$50.00 (from C$49.00) with a "sector perform" rating, implying about a 4.62% upside
• The stock traded at C$47.79 with a market cap of C$13.01 billion, but carries a very high P/E of 318.6 and a debt-to-equity of 194.86, highlighting valuation and leverage considerations for investors.
• Canadian Utilities reported quarterly EPS of C$0.89 on C$1.08 billion revenue, with a low net margin (3.22%) and ROE (1.74%), and analysts forecast about 2.41 EPS for the current fiscal year.

Canadian Utilities (TSE:CU - Get Free Report) had its price target boosted by research analysts at Royal Bank Of Canada from C$49.00 to C$50.00 in a research report issued to clients and investors on Thursday,BayStreet.CA reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price indicates a potential upside of 4.62% from the stock's previous close.

CU has been the topic of a number of other research reports. National Bank Financial lifted their price objective on Canadian Utilities from C$45.00 to C$46.00 and gave the company a "sector perform" rating in a report on Thursday. TD Securities raised their price target on Canadian Utilities from C$41.00 to C$47.00 and gave the company a "hold" rating in a report on Tuesday, March 3rd. Finally, Canadian Imperial Bank of Commerce upped their price objective on Canadian Utilities from C$47.00 to C$51.00 in a report on Monday, April 20th. Four investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of C$46.83.

Canadian Utilities Stock Performance

Canadian Utilities stock traded down C$1.16 during trading hours on Thursday, reaching C$47.79. 197,300 shares of the stock were exchanged, compared to its average volume of 583,094. Canadian Utilities has a 52-week low of C$36.23 and a 52-week high of C$51.05. The stock has a market cap of C$13.01 billion, a P/E ratio of 318.60, a P/E/G ratio of 2.38 and a beta of 0.60. The company has a debt-to-equity ratio of 194.86, a quick ratio of 1.30 and a current ratio of 1.56. The firm's 50 day moving average is C$48.52 and its 200 day moving average is C$44.66.

Canadian Utilities (TSE:CU - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported C$0.89 earnings per share for the quarter. Canadian Utilities had a net margin of 3.22% and a return on equity of 1.74%. The business had revenue of C$1.08 billion for the quarter. Analysts predict that Canadian Utilities will post 2.4063556 EPS for the current fiscal year.

Canadian Utilities Company Profile

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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