Algonquin Power upgraded at Wells Fargo, anticipating steps to firm finances

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Algonquin Power (NYSE:AQN) +1.6% in Thursday's trading as Wells Fargo upgraded shares to Overweight from Equal Weight with a $9 price target, anticipating the company will launch aggressive strategic actions to firm its financial footing including a material dividend cut and a paring back of capital investment; AQN has scheduled a business update for January 12.

Wells Fargo said its analysis is baed on an EV/EBITDA analysis for the Regulated group and the Renewables group and fair market value for Algonquin's (AQN) long-term investments, which include the company's 43% ownership stake in Atlantica Sustainable Infrastructure.

Algonquin Power (AQN) has been among the poorest performing utility stocks, especially after FERC denied the company's Kentucky Power deal, Trapping Value writes in an analysis published recently on Seeking Alpha.