AltaGas Ltd. (ALA:CA) (ATGPF)
AltaGas Ltd. is a Canadian energy infrastructure company operating in two main segments: utilities and midstream (natural gas and LPG exports). The company has shown steady earnings growth, supported by strong demand for natural gas exports and stable utility revenues.
TD Cowen has initiated coverage on AltaGas with a “Buy” rating, citing a sector-leading growth outlook driven primarily by its midstream business, which is showing strong momentum. The firm sees AltaGas as well-positioned to benefit from increasing demand in natural gas and NGL (natural gas liquids) markets, particularly in Western Canada, and anticipates the company will deliver above-average earnings and cash flow growth compared to its peers.
TD Cowen also highlighted AltaGas’s diversified portfolio, which includes both utility and midstream operations, offering stability from the regulated utility segment and upside from the more growth-oriented midstream assets. The report points to recent investments in export infrastructure and capacity expansion, as well as disciplined capital management, as key catalysts that support the firm’s bullish long-term view. Overall, the buy rating reflects confidence in AltaGas’s strategy, execution, and its potential to outperform within the North American energy infrastructure sector.
Stock Forecast & Analysis
AltaGas Ltd. (ALA:CA) currently holds a consensus rating of “Buy”, based on input from nine analysts. Out of these, seven have issued a “Buy” rating, one has a “Hold”, and one has a “Sell”, reflecting overall positive sentiment with some cautious views.
The average 12-month price target for AltaGas is approximately C$41.00 per share, suggesting moderate upside potential from its current trading levels at $39.53. Analyst price targets range from a low of C$35 to a high of C$45, indicating a balanced range of expectations based on both short-term challenges and long-term growth opportunities, particularly in the company’s midstream and utility businesses.
Positive Signals:
Growing LPG export volumes to Asia
Stable, regulated utility operations
Strong dividend track record
Positive long-term earnings and revenue outlook
Negative Signals:
Exposure to commodity price fluctuations
Capital-intensive infrastructure projects
Regulatory and interest rate sensitivity
Outlook
Analysts remain bullish on AltaGas, expecting continued earnings growth from midstream expansions and steady performance from the utility side. The stock is seen as a solid income and infrastructure play with moderate upside.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
The emphasis on midstream momentum makes sense given current market dynamics in Western Canada. But I wonder how much potential regulatory hurdles might temper that growth over the next few years.