CA - Capital Power: 6.26% Yield But Capital Appreciation Unlikely In 2024

2024-07-07 22:29:44 ET

Summary

• Capital Power had a total return of 8.38% since our buy rating.
• Q1-2024 results were weak, with a big miss in Alberta EBITDA.
• CPX has hedged a large portion of 2025-2026 power volumes, but forward prices have cratered.
• We tell you how we changed our positioning on this one.

Note: All amounts are in Canadian Dollars

On our previous coverage of Capital Power Corporation (CPXWF) ( CPX:CA ), we gave it a buy rating and suggested investors would do well to enter it using the exchangeable units, which were trading at a 1% discount. Since then, CPX has done modestly well with a total return of 8.38%....

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