AQN - Algonquin Power cut at BofA as canceled Kentucky deal already priced in

2023-04-18 11:23:16 ET

Algonquin Power & Utilities ( NYSE: AQN ) -4.5% in Tuesday's trading for a third straight daily decline, as Bank of America downgraded the stock to Netural from Buy with an $8.50 price target, trimmed from $9, after plans to buy assets in Kentucky from American Electric Power were ended this week .

Algonquin Power ( AQN ) shares have surged 30% YTD, as the company's ability to avoid closing the deal and costly debt financing had largely been priced in, and the timing of the next catalysts are not obvious, BofA's Dariusz Lozny said.

Company management historically has refreshed capital in the fall, "suggesting investors could be waiting for some time for additional clarity on the path forward and long-term EPS growth target."

Algonquin Power ( AQN ) recently cut its dividend to common shareholders by 40% for a rightsized 5.4% forward yield, Pacifica Yield writes in an analysis published on Seeking Alpha .

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