The Globe and Mail reports in its Tuesday edition that CIBC Capital Markets analyst Mark Jarvi moved his share targets for Capital Power to $85 from $72 and TransAlta to $26 from $20 with "outperformer" ratings for both. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target Capital Power and TransAlta at $67.67 and $20.32. Mr. Jarvi says in a note: "Near-term Alberta (AB) power prices remained relatively stable, and we expect muted Q3 results for both Capital Power and TransAlta on weak generation trends. Medium-to-longer-term AB power price forward are holding steady and show upside (2028 in particular) given expected higher load from data centres(the Greenlight JV date centre customer securing/aggregating 907MW is positive). We expect TransAlta's allocation/potential MOU announcement soon and Capital Power's monetization/PPA in the coming months (plus positive comments on Phase 2). We still see upside to 2028 forward, estimates and share prices. We've raised our AB 2028-plus price assumptions, along with other positive model changes that take our targets higher for both Capital Power and TransAlta. ... We see more value in Capital Power at current levels."
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