RBC Capital Maintains Buy Rating for TransAlta with $20.00 Target

RBC Capital maintains a Buy rating for TransAlta with a price target of C$20.00, despite the company's Q1 revenue falling to $758 million and net profit dropping to $46 million from $947 million and $222 million, respectively. Analyst Choy has a 69.87% success rate on recommended stocks and a 10.4% average return.

TransAlta Corporation (NYSE: TAC) reported its Q2 2025 financial results, revealing a mixed bag of performance metrics. The company's GAAP EPS stood at -C$0.38, indicating a decline from the same period in 2024. Revenue for the quarter was C$433 million, a 25.6% year-over-year decrease. Despite these declines, adjusted EBITDA rose to C$349 million, up from C$316 million in the same period last year [1].

Free Cash Flow (FCF) remained consistent at C$177 million, or C$0.60 per share, while cash flow from operating activities increased to C$157 million, or C$0.53 per share, compared to C$108 million and C$0.36 per share, respectively, in the same period last year [1].

RBC Capital, in a recent report, maintained a Buy rating for TransAlta, with a price target of C$20.00. Analyst Choy, who has a 69.87% success rate on recommended stocks and a 10.4% average return, acknowledged the company's Q1 revenue falling to $758 million and net profit dropping to $46 million from $947 million and $222 million, respectively [2].

The company's strategic partnership and revised growth plans for 2025, as announced in a recent earnings call, have bolstered investor sentiment. However, regulatory and legislative uncertainties remain a concern for some analysts. Despite these challenges, the positive outlook from the earnings call and ongoing strategic projects continue to support the stock's valuation [2].

References:

[1] https://seekingalpha.com/news/4476472-transalta-gaap-eps-of-c038-revenue-of-c433m
[2] https://www.tipranks.com/stocks/tse:fts/forecast