The Globe and Mail reports in its Thursday edition that CIBC's Mark Jarvi has reiterated his "outperform" recommendation for Capital Power. The Globe's David Leeder writes that Mr. Jarvi continues to target the shares at $81. Analysts on average target the shares at $77.44. Mr. Jarvi says in a note: "We believe the growth drivers and ability to achieve its recently outlined 8- to 10-per-cent AFFO/sh growth target through 2030 are underappreciated. In our view, Capital Power can drive strong upside (4 to 7 per cent) from capital-light margin upside from higher merchant prices (AB and in the U.S.) and from recontracting of U.S. assets. Further, it has a track record, capability and supportive partners to drive value creation from more M&A. While some investors might be fussed by a lack of valuation creation to date in Alberta from data centre opportunities, we still believe that can materialize and the stock price today only assumes $60/MWh in Alberta in 2028 (below our assumption and forward in the $75-$80/MWh range). Overall, it checks the boxes in terms of paths to drive total shareholder returns, including a growing attractive dividend, solid per share growth prospective and valuation rerating potential."
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