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Innergex Renewable Energy Inc. (INE.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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20.58+0.50 (+2.49%)
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  • O
    sweet mama
  • d
    Just saw this upgrade, to $25/share:

    Innergex Renewable Energy (Innergex Renewable Energy Stock Quote, Chart, News TSX:INE) is down by about a third this year, but iA Capital Markets analyst Naji Baydoun is bullish on the renewable energy stock. Baydoun resumed coverage on Innergex with a “Buy” rating and a new target price of $25/share (previously $24/share) in an update to clients on Tuesday, saying the company has a high-quality, low-risk asset portfolio.

    Headquartered in Longueuil, Que., and owned by Hydro Quebec, Innergex Renewable Energy is a developer, owner and operator of run-of-river hydroelectric facilities, wind energy, and solar farms in North America, with operations in Quebec, Ontario, British Columbia, and Idaho.

    Baydoun’s coverage return comes after Innergex announced its intent to participate in a joint acquisition with Hydro Quebec of the Curtis Palmer hydro portfolio in New York from Atlantic Power Ltd. for approximately US$310 million (approximately $387.5 million), marking the company’s entry into the New York renewable energy market. (All figures in Canadian dollars except where noted otherwise.)

    The transaction is expected to close in the fourth quarter of 2021, with the assets under contract through 2027.

    “The acquisition will strategically expand INE’s hydro footprint and increase the hydro-based cash flows within the company’s portfolio, which could provide support for equity market valuation,” Baydoun said. “Furthermore, the transaction is the first joint acquisition by INE and HQ, and represents a “proof of concept” for the potential that the partnership can deliver in terms of further enhancing INE’s ability to source and execute on new growth opportunities.”

    The company also announced $175 million in bought deal financing. The Curtis Palmer deal is expected to be accretive for the joint operation, with Curtis Palmer assets expected to generate approximately US$42.5 million per year in adjusted EBITDA, as well as approximately US$39.5 million per year in free cash flow through the expiry of the power purchase agreement.

    “We are thrilled to announce this first joint acquisition with Hydro-Québec under the Strategic Alliance. The acquisition of Curtis Palmer represents an opportunity for Innergex to apply its 30 years of expertise in managing small run-of-river hydroelectric facilities, while leveraging Hydro-Québec’s experience in New York to get a foothold in a new market,” said Michel Letellier, President and Chief Executive Officer of Innergex in the company’s August 17 press release.

    “After having been commercial partners with the State of New York for more than 100 years, we are now entering a new phase by investing directly in the State’s hydropower generation infrastructure alongside Innergex, to which we will both bring our extensive expertise. This investment clearly demonstrates our commitment to developing the share of renewables in the energy mix of North America,” added Sophie Brochu, President and CEO of Hydro Québec.

    On top of the proposed acquisition, the company has remained busy in other markets, most notably in Chile, where the company acquired the remaining 50 per cent interest in renewable energy company Energía Llaima for an aggregate consideration of US$71.4 million ($89.4 million). Innergex further expanded its presence in the country by acquiring an 18 MW run-of-river hydro facility on the Licán River for US$40.5 million ($50.5 million) with an equity investment for Innergex of US$16.6 million ($20.6 million).

    In the United States, the company also commissioned its Griffin Trail wind facility in Texas while increasing production at the Hillcrest solar facility in Ohio.

    Innergex reported slight growth in its second quarter financial results, headlined by a three per cent year-over-year growth in proportionate revenue to $198.4 million, along with a four per cent year-over-year growth in proportionate adjusted EBITDA to $146 million

    The proposed acquisition has prompted Baydoun to revise some of his financial estimates, with revenue now projected to hit $726 million instead of the original $720 million for 2021, which represents a potential year-over-year increase of 18.4 per cent. From there, Baydoun projects continued growth through 2024, where the $813 million forecast is a bump up from the initial $758 million projection, and represents a potential year-over-year increase of 1.9 per cent.
    Innergex Renewable Energy is down by about a third this year, but iA Capital Markets analyst Naji Baydoun is bullish on the renewable energy stock. Baydoun resumed coverage with a “Buy” rating and a new target price of $25/share in an update to clien
    Innergex Renewable Energy is down by about a third this year, but iA Capital Markets analyst Naji Baydoun is bullish on the renewable energy stock. Baydoun resumed coverage with a “Buy” rating and a new target price of $25/share in an update to clien
  • G
    Golden Mamba
    Nice to see the jump - This was long overdue
  • A
    Massive consolidation from HydroQuebec that bought lots of shares at 18.5 and 19.5, good dividend also.
  • V
    Offering 🤙
  • s
    $INE.CA Target Credit Suisse Outperform CAD 26
  • O
    time to load up tomorrow
  • R
    Hydro - (Quebec)
    10% Security Holder of Issuer
    Acquisition or disposition carried out privately at price 17.75 per share. Indirect 17,782,951 Jul. 09, 2021 1,001,800
  • d
    Is anybody else concerned about the high level of DEBT that INE carries?
    This is my only real concern about the company. What do others think? I know its a utility and it's business is pretty steady and reliable, but they seem to be constantly buying more assets. Are they biting off more than they can chew? When will they start to pay down this debt?
  • J
    INE.TO (innergex) earnings UP 316% from a year ago .... !! Something wrong here, the stocks is down around 5% so far today (aug 04) ... is there any reason or is it pure and simple manipulation ? Volume is hgh, buyers are active.
  • M
    If they cannot deploy that cash soon at attractive returns it looks like they are going to have to eat into it to sustain the dividend... 120%+ payout is extreme.

    Also, no real growth. FCF is negative 5% on the year but the stock has rallied to all time highs... That's all multiple expansion, not actual business growth. I'd be careful here.
  • C
    Innergex Renewable Power preferreds pay between 6.18 and 6.68%. Pick one of the preferreds and collect the dividend. Low risk good dividend
  • j
    This stock is owned at 20% By Hydro-Quebec. The Quebec government announced that they will ban new gas/diesel cars from the market by 2035. This stock is good for the long run
  • M
    always load on big dips 👌
  • o
    I paid $8.99/sh for this in 2010 . I think the dividend was .60, for a 6.67% yield. Something like that. I still hold all of it. Look at the yield on this thing now ... 2.57% .... unreal. This was supposed to be the slow grow (even basically no grow ) steady freddy. Algonquin, Boralex and NPI were the ones with the deals and pipelines.
  • J
    Bought this stock this morning after comparing with Boralex. I like that the dividend is higher and the price is cheaper. They have a good number of potential projects lined up and a good production level already. I expected continued expansion and a return to profitability in Q3. Not too mention expertise in wind and solar is in itself a valuable commodity as governments talk about transition to a greener economy worldwide.
  • R
    Why the drop this morning?
  • M
    Did I calculate correctly? The dividend was just increased 12%+

    If so, wow!
  • M
    Mr. Dangerous
    what you guys think of this stock, im interested in putting my money into it