TransAlta (TAC) Earns Buy Rating From TD Securities Despite Recent Share Weaknes

TransAlta Corporation (NYSE:TAC) is included among the 10 Best Canadian Dividend Stocks to Buy for the Next 5 Years.

On June 10, TD Securities resumed coverage of TransAlta Corporation (NYSE:TAC) with a Buy rating. It also set a C$26 price target on the stock. The update came following the completion of the company's bought deal equity offering. The firm said the stock's 13% pullback since the announcement of TransAlta's acquisition of Colorado gas-fired peaking assets reflects concerns about the assets' characteristics and the company's valuation. Even so, TD Securities believes the acquisition aligns with TransAlta's strategy to expand its presence in the Western US. The firm also expects near-term progress on the broader Alberta data center opportunity.

Earlier, on June 4, Reuters reported that TransAlta would acquire two natural gas-fired peaking facilities near Denver, Colorado, from Blackstone for about $1 billion. It would strengthen its position in the Western US power market. Power producers have been adding flexible gas-fired generation capacity to meet rising electricity demand as the industry prepares for rapid growth in consumption, driven in part by power-hungry dat

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/transalta-tac-earns-buy-rating-053957305.html)