Transalta: TD Securities raises PT to $20 from $19, maintains Buy rating.

Transalta: TD Securities raises PT to $20 from $19, maintains Buy rating.

July 2, 2025

TransAlta Corporation (NYSE: TAC) has seen a positive boost in its stock valuation, as TD Securities has increased its price target to $20 from $19, while maintaining a Buy rating. This move follows the company's robust second-quarter earnings report, where TransAlta exceeded analysts' expectations with a reported EPS of $0.13, compared to the expected $0.07 [1].

The earnings call highlighted TransAlta's strong performance across various segments. The company reported an adjusted EBITDA of $349 million, free cash flow of $177 million, and an average fleet availability of 91.6%. The Alberta portfolio's hedging strategy and active asset optimization were key drivers of this performance, with realized prices well above spot prices [1].

TD Securities' analysts praised TransAlta's strategic moves, particularly its successful recontracting of wind facilities in Ontario and its engagement with the Alberta Electric System Operator (AESO) on data center strategy. These moves are expected to bring significant investment to Alberta and rebalance the province's generation supply [1].

Looking ahead, the company remains optimistic about its ability to meet its 2025 guidance range. The analysts at TD Securities also noted the potential for further growth in the renewable energy sector, which could drive additional earnings for TransAlta.

References:

[1] TransAlta Corporation (NYSE: TAC) Q2 2025 Earnings Call Transcript. Retrieved from https://www.insidermonkey.com/blog/transalta-corporation-nysetac-q2-2025-earnings-call-transcript-1582781/