Algonquin Power & Utilities Corp. (TSE:AQN) (NYSE:AQN) has been in the news all week. The most recent news is that it has piqued the interest of activist investor Starboard Value LP after another activist investor urged the company to sell off assets. Sources say that Starboard has been having friendly talks with the Canadian utility company for several weeks.
In a public letter on Monday, activist investor Ancora Holdings Group displayed support for Algonquin’s decision and urged the company to expedite its plan to divest $1 billion worth of assets.
For context, Algonquin slashed its dividend in January and revealed its intention to divest US$1 billion in assets. CIBC (TSE:CM) analyst Mark Jarvi believes that Algonquin’s stake in Atlantica Sustainable Infrastructure could be up for grabs. However, on Tuesday, Jarvi warned that current challenges might affect the company’s earnings until 2025. Further, AQN’s deal to buy Kentucky Power collapsed this week, causing the stock to initially rise before falling once more.
Is AQN Stock a Buy, According to Analysts?
According to analysts, AQN stock comes in as a Moderate Buy based on two Buys, seven Holds, and zero Sell rating assigned in the past three months. The average Algonquin Power & Utilities stock price target of C$12.32 implies 8.9% upside potential.