Jefferies has initiated its coverage on TransAlta Corporation (TAC, Financial), assigning a Hold rating and a target price of C$12. The firm cites TransAlta's strategic shift towards prioritizing thermal projects over renewable energy, specifically targeting infrastructure like data centers in Alberta and increasing capacity in Washington.
However, Jefferies notes that the current macroeconomic conditions may not support a significant influx of large tech companies, which could impact demand for such data centers. The analysis suggests that TransAlta's shares are currently valued slightly above the worth of its current asset portfolio, excluding potential gains from data center expansions.
Jefferies cautions investors that those seeking an immediate catalyst may find themselves waiting, as the anticipated growth drivers might not materialize in the near term given the current market environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for TransAlta Corp (TAC, Financial) is $12.87 with a high estimate of $16.30 and a low estimate of $9.89. The average target implies an upside of 51.06% from the current price of $8.52. More detailed estimate data can be found on the TransAlta Corp (TAC) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, TransAlta Corp's (TAC, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TransAlta Corp (TAC, Financial) in one year is $6.03, suggesting a downside of 29.23% from the current price of $8.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TransAlta Corp (TAC) Summary page.
