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RBC Favors Brookfield, AltaGas, Emera Among Canadian Regulated Utilities

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RBC Capital Markets continues to favor Brookfield Infrastructure (BIP-UN.TO), AltaGas (ALA.TO) and Emera (EMA.TO) in its Canadian regulated utilities coverage, according to a note published Wednesday.

The valuation of Canadian regulated utilities is elevated, driven by longer runway of growth ahead, plus the attractiveness of their defensive characteristics, RBC said.

Canadian regulated utilities have continued to deliver on their strategic priorities, as evidenced by their first-quarter results, the reaffirmation of their multi-year capex plans, and the maintenance of key growth themes.

"Indeed, affordability remains top of mind for many (if not all) stakeholders, and we remain wary of rate cases that are either outstanding or scheduled to be filed this year," RBC said. "Still, the micro-level steps taken recently by the utilities to derisk their businesses and advance growth initiatives are commendable and should not go unnoticed despite daily macro and AI/tech headlines."

Ultimately, this quiet grind will benefit shareholders through the continuation of the sector's predictable, low-risk earnings," RBC said.

Price: $53.41, Change: $-0.18, Percent Change: -0.34%

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