Energy infrastructure and generation powerhouse TransCanada Corp. (NYSE:TRP) has seen its shares gains nearly 5% since mid-April, and its first quarter results that came in generally as expected, continued to fuel optimism for the stock.
The company continues to make progress on various projects, while its acquisition of ANR assets, which closed in February, are paying off, Robert Kwan, an analyst with RBC Capital Markets said in a note to clients.
He also noted that the restart of Bruce Power's A nuclear generating station is on budget and schedule, and there is progress being made on new power plants in Ontario.
Mr. Kwan has an "outperform" rating on TransCanada shares and a C$46 price target, representing upside of 16%.
Deniel Shteyn also likes the company's prospects going forward and considers it the name most likely to outperform among its competitors. However, given the stock's recent run-up and the limited remaining upside for 2007 that results, he moved his recommendation to "buy" from "top pick."
Mr. Shteyn has a C$43 price target on TransCanada shares.
He noted that the company's recent equity issue was larger-than-expected, he continues to expect earnings per share growth of 9% to 10% this year.