Investment analysts at BMO Capital Markets dropped their target price on shares of Atlantic Power (TSE: ATP) from $12.00 to $7.00 in a note issued to investors on Monday. The firm currently has an “underperform” rating on the stock.
Shares of Atlantic Power traded down 13.42% during mid-day trading on Monday, hitting $6.32. Atlantic Power has a 52 week low of $6.27 and a 52 week high of $15.12. The stock’s 50-day moving average is currently $11.81. The company’s market cap is $754.2 million.
Other equities research analysts have also recently issued reports about the stock. Analysts at CIBC cut their price target on shares of Atlantic Power from $12.00 to $7.50 in a research note to investors on Monday. They now have a “sector perform” rating on the stock. Separately, analysts at Desjardins downgraded shares of Atlantic Power from a “buy” rating to a “hold” rating in a research note to investors on Friday. Finally, analysts at Scotiabank cut their price target on shares of Atlantic Power from $10.00 to $6.00 in a research note to investors on Friday. They now have an “underperform” rating on the stock.
BMO Capital Markets noted, “In our eyes, reducing the dividend is a good first step for ATP in terms of strengthening its balance sheet and ability to deliver on acquisitions, which could ultimately translate into net asset value upside should these transactions unfold. However, the magnitude of the dividend reduction has likely eroded market confidence and therefore we highly doubt investors will give the company the benefit of the doubt particularly in light of the weaker financial outlook (especially the potential re-contracting challenges in Ontario and New York). We have reduced our target price to $7 from $12/sh and have maintained our Underperform rating, until the company can prove out its revised strategy of sustainable income and growth.”