Algonquin Power price target lowered to $6.50 from $7.50 at Scotiabank

Scotiabank lowered the firm’s price target on Algonquin Power to $6.50 from $7.50 and keeps a Sector Perform rating on the shares. Interest rates remain stubbornly high, which has weighed on the sector’s valuation, the analyst tells investors. The firm views both Canadian and North American utility stocks as undervalued but sees upside for Canadian utility stocks following their steady underperformance compared to its U.S. peers. Fundamentally, Scotiabank remains bullish on the group’s long-term earnings outlook given the tailwinds driving its strong rate base growth.