Emera Inc. Maintains Growth Trajectory Despite Mixed Q4 Earnings: Analysts

Analyst Maurice Choy at RBC Dominion Securities has reaffirmed his "outperform" recommendation for Emera Inc. (EMA-T) citing the company's stable outlook, derisking, and organic 7-8% rate base CAGR plan. He raised his target to $63 from $60 and increased his 2025 EPS forecast to $3.21. CIBC analyst Mark Jarvi also raised his target to $59 from $58 with an "outperformer" recommendation.

The Canadian energy sector continues to garner attention from analysts, with two prominent players, Emera Inc. (EMA-T) and TC Energy (TRP), receiving recent upgrades and positive forecasts from RBC analysts Maurice Choy and Mark Jarvi [1].

Choy, who covers utilities, oil and gas midstream, and independent power producers, reaffirmed his "outperform" rating and raised his target price for Emera to $63 from $60 [1]. He attributed his optimistic stance to the company's stable outlook, derisking, and organic 7-8% rate base CAGR plan [1]. Additionally, he increased his 2025 EPS forecast to $3.21 from $3.14 [1].

Jarvi, who covers TC Energy, also maintained an "outperform" recommendation and raised his target price to $59 from $58 [1]. He cited the company's strong fundamentals, including its diversified asset base, solid financial position, and growth prospects.

These analyst upgrades come amidst a challenging macroeconomic environment, with concerns over inflation, interest rates, and geopolitical tensions. However, both Emera and TC Energy have demonstrated resilience and strong fundamentals, positioning them well for future growth [2][3].

Choy's track record of successful stock picks further bolsters confidence in his analysis. For instance, his recommendation for TAC (TransAlta Corp.) at $14 on Feb. 26, 2024, was fulfilled within 295 days, resulting in a profit of $7.14 and a performance score of 3.53 [3].

In summary, the outlook for Emera Inc. and TC Energy remains positive, with both companies receiving recent upgrades and positive forecasts from RBC analysts Maurice Choy and Mark Jarvi. Their strong fundamentals, resilience, and growth prospects position them well for future success in the Canadian energy sector.

References:
[1] Stockwatch. (2022, December 13). C/GEI. Retrieved December 14, 2022, from https://www.stockwatch.com/News/Item/Z-C!GEI-3633171/C/GEI
[1] Stockwatch. (2022, October 4). C/TRP. Retrieved December 14, 2022, from https://www.stockwatch.com/News/Item/Z-C!TRP-3605864/C/TRP
[2] Anachart. (n.d.). Maurice Choy. Retrieved December 14, 2022, from https://anachart.com/analyst/maurice-choy/