Algonquin: More Challenges Than Upside

Summary:

  • AQN’s strategic review has resulted in a decision to seek a buyer for its renewable energy segment, driven by the company’s precarious financial status.
  • Even after a re-rating of its remaining regulated operations in-line with peers, the company shares do not appear undervalued.
  • I rate AQN shares an avoid. Even if shares do not appear overvalued, investors should look elsewhere or wait for a significantly better entry point.
Bear Market

DNY59

Following the publication of the 1H23 company results, I am taking a fresh look at Algonquin Power & Utilities Corp. (NYSE:AQN), a Canadian renewable energy and utility business. My interest in AQN comes primarily from my ownership of Atlantica Sustainable


Analyst’s Disclosure: I/we have a beneficial long position in the shares of AY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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