National Bank of Canada on Tuesday resumed coverage of TransAlta (TA.TO) with an outperform rating and C$24 price target.
The bank resumed coverage of TransAlta following its C$350 million equity financing priced at $19.20 per share to fully fund the equity portion of its US$1.0 billion acquisition of two natural gas-fired peaking facilities in Colorado.
TransAlta has entered an agreement to acquire the 162 megawatt (MW) Mountain Peak Power and the 156 MW Canyon Peak Power natural gas-fired peaking facilities near Denver, Colorado.
Both facilities are 100% contracted, receive fixed capacity payments, and benefit from full fuel and capital cost pass-through. The deal is expected to close in the fourth quarter of 2026.
TransAlta traded at $17.23 per share at last look Wednesday on the Toronto Stock Exchange.
Price: $17.28, Change: $-0.12, Percent Change: -0.69%