In a report released today, Julien Dumoulin Smith from Jefferies reiterated a Buy rating on TransAlta, with a price target of C$27.00.
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Julien Dumoulin Smith has given his Buy rating due to a combination of factors that highlight TransAlta’s potential for future growth. The analyst has increased the price target for TransAlta to $27 per share from the previous $20, reflecting a positive outlook on the company’s ability to capitalize on the evolving Alberta power market. This optimism is partly driven by the anticipated upside catalysts in the fourth quarter of 2025, including potential guidance on Alberta Phase 1 and 2 opportunities and the resolution of the Centralia coal-to-gas conversion.
Furthermore, Dumoulin Smith notes that the current consensus estimates do not fully appreciate the potential price upside, with TransAlta’s stock having already shown strong performance over the past six months. The analyst’s model assumes a conservative power price estimate, yet still sees significant upside due to TransAlta’s leverage to higher Alberta prices and the multiple phases of data center integration. The upcoming Investor Day in November is expected to provide further clarity on these opportunities, reinforcing the Buy recommendation.
In another report released on October 6, Scotiabank also maintained a Buy rating on the stock with a C$23.00 price target.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TAC in relation to earlier this year.