Algonquin Power cut to Sector Perform at RBC Capital after Q3 earnings miss

RBC Capital analyst Nelson Ng downgraded Algonquin Power to Sector Perform from Outperform with a price target of $12, down from $17. The analyst cites the company’s "weak" Q3 earnings miss and guidance cut, adding that Algonquin will also need to cut its dividend, reduce its capital program and growth targets, explore additional asset sales, and keep equity needs to a minimum. Ng adds that Algonquin has an opportunity to address its exposure to floating interest rates at the upcoming Investor Day to reset its strategy, warning that shares could be range-bound until there is more visibility.