TransAlta price target lowered to C$14 from C$15 at RBC Capital

RBC Capital lowered the firm’s price target on TransAlta to C$14 from C$15 but keeps an Outperform rating on the shares. The market will favorably view the management’s decision to take a more balanced capital allocation approach, which now prominently features an additional element that tangibly returns capital back to shareholders, particularly as TransAlta’s strong cash flow generation continues into 2024, the analyst tells investors in a research note. RBC adds however that it will look for evidence of this more balanced approach being taken over the near term, with growth projects appropriately competing for capital versus other available options.