Research Alert: CFRA Keeps Hold Opinion On Shares Of Power Corporation Of Canada
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by CAD15 to CAD85, valuing the shares at 14x our 2026 adjusted EPS estimate of CAD6.00 (raised today from CAD5.85) and at 13x our 2027 EPS estimate of CAD6.55 (raised from CAD6.40), vs. the shares' three-year average forward multiple of 10x and a peer average of 11x. POW reported strong Q1 2026 adjusted EPS of CAD1.43 vs. CAD1.22 a year ago, reflecting broad-based strength across most operating segments and matching our CAD1.42 estimate and the CAD1.43 consensus view. Net earnings from continuing operations rose 19% to CAD820M, while EPS increased nearly 21% to CAD1.29 vs. CAD1.07 in the prior-year period, demonstrating solid operational execution. We applaud these results, and reaffirm our 2026 operating revenue growth forecast of 7% to 12%. At current levels, shares trade at a premium to peers and historical averages are fairly valued, but we think they are worth holding given their 3.4% yield.
