Rockpoint Gas Storage (RGSI:CA)
National Bank of Canada Upgraded Rockpoint Gas Storage to a “Outperform” rating from a “Sector Perform” rating, alongside a target price increase to C$31 from C$26, reflecting growing confidence in the company’s balance sheet strength and strategic flexibility. The upgrade is driven by Rockpoint’s substantial liquidity position, which provides what the bank described as ample “dry powder” to fund additional near-term organic growth initiatives, including incremental storage optimization projects and potential capacity expansions across its asset base.
National Bank also highlighted Rockpoint’s improved positioning to pursue accretive mergers and acquisitions, noting that the current market environment may present attractive valuation opportunities for high-quality gas storage assets. With a stronger capital structure and disciplined cost management, Rockpoint is viewed as well equipped to deploy capital without materially increasing financial risk, while enhancing long-term cash flow visibility. The rating upgrade reflects expectations that Rockpoint can accelerate growth and deliver above-peer returns as it leverages both internal projects and external M&A to scale its platform.
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