
AQN Stock Forecast & Price Target
AQN Analyst Ratings
Bulls say
Algonquin Power & Utilities Corp has demonstrated a solid improvement in its earned return on equity (ROE), with projections for 2027 now at 8.4%, up from 8.1%. The company's favorable outlook for 2025-2027 exceeded market expectations, contributing to a notable 16% increase in share value. Additionally, management anticipates continued growth in the rate base exceeding 5% beyond 2027, driven by awarded transmission projects, further enhancing the company's financial position.
Bears say
Algonquin Power & Utilities Corp is facing a negative outlook primarily due to anticipated regulatory challenges and the projected decline in its dividend payout ratio, which is expected to exceed 100% by 2025 based on forecast earnings. Despite management's goal to reduce operating expenses to approximately 32% of revenue by 2027, the company is still grappling with a downside scenario in which ongoing regulatory lag and failure to meet earnings guidance significantly impacts its stock valuation. Furthermore, the inherent risks of potential negative regulatory decisions in the U.S. market contribute to investor apprehension, leading to shares trading at a substantial discount compared to similar companies.
This aggregate rating is based on analysts' research of Algonquin Power & Utilities and is not a guaranteed prediction by Public.com or investment advice.
AQN Analyst Forecast & Price Prediction
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