Research Alert: CFRA Maintains Sell Opinion On Shares Of Canadian Utilities Limited
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our target price of CAD45. This remains derived from a 17.0x earnings multiple applied to our FY 27 EPS estimate. We slightly lower our FY 26 adjusted EPS to CAD2.36 from CAD2.45 and maintain our FY 27 estimate at CAD2.65. Valuations remain elevated on a relative and absolute basis, trading above the long term upper band on both acounts. Alberta power infrastructure is certainly a quality geographic and thematic niche, however history has shown this valuation does not last long and we don't see a path for EPS growth to drive it down sharply. Past performance is not necessarily indicative of future results, but we don't see a prudent justification for more multiple expansion.
