In a report released on May 2, Brent Stadler from Desjardins maintained a Hold rating on Brookfield Renewable Partners (BEP – Research Report), with a price target of C$40.00.
Brent Stadler has given his Hold rating due to a combination of factors influencing Brookfield Renewable Partners. The company’s recent quarterly results slightly exceeded expectations, driven by better-than-anticipated generation and asset sales. Despite the strong demand for renewable energy, particularly from large technology companies, and the potential for new agreements in 2025, Stadler maintains a cautious stance.
Brookfield Renewable Partners boasts a high-quality, well-contracted portfolio with a significant portion of its revenue indexed to inflation, which provides stability. The company is adeptly managing tariffs and maintaining its development pipeline, which is crucial given the current macroeconomic challenges. While there are attractive M&A opportunities and strong private market valuations that could support growth, the decision to hold stems from considerations such as interest rate sensitivity, foreign exchange risks, and weather volatility. Therefore, while the company is well-positioned in the renewable energy market, these factors contribute to the Hold rating.
According to TipRanks, Stadler is ranked #6834 out of 9472 analysts.