BMO Capital analyst Benjamin Pham maintained a Hold rating on Fortis yesterday and set a price target of C$74.00.
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Benjamin Pham’s rating is based on Fortis’ consistent performance and balanced financial strategy. The company has demonstrated a strong track record by surpassing earnings expectations for thirteen consecutive quarters, which underscores its reliable growth trajectory. Despite this, the Hold rating reflects a cautious stance due to the relative return in comparison to other large-cap utilities, even though Fortis maintains a highly defensive business model with its fully regulated operations.
Furthermore, Fortis has extended its capital expenditure guidance to 2030, indicating a robust investment plan aimed at supporting future growth. The company’s ability to fund these initiatives through existing cash flows, new debt, and the dividend reinvestment plan adds to its financial stability. While the stock showed resilience in a challenging market, the Hold rating suggests a balanced view, acknowledging both the potential upsides from ongoing projects and the competitive landscape within the utility sector.
Pham covers the Utilities sector, focusing on stocks such as Boralex Inc Cl A, Brookfield Renewable Partners, and Fortis. According to TipRanks, Pham has an average return of 9.3% and a 66.60% success rate on recommended stocks.
In another report released on October 26, RBC Capital also maintained a Hold rating on the stock with a C$72.00 price target.