The Globe and Mail reports in its Wednesday, Sept. 18, edition that Credit Suisse analyst Andrew Kuske continues to rate TransAlta "neutral" and target the shares at $10, 55 cents below the consensus. The Globe's David Leeder writes in the Eye On Equities column that Mr. Kuske sees TransAlta "approaching an anticipated inflection" following the release of its Clean Energy Investment Plan ahead of its Investor Day on Monday, which he calls an "ambitious and transformative approach to pivoting the portfolio." He says in a note: "In our view, the scale and timing of the plan execution should not be viewed as much of surprise, but the details help enable a better handicapping of TA's future success. The Investor Day gave more details on timing and numbers. ... On balance, the plan should be viewed positively in our view given the delineation of the $2-billion of costs that includes approximately $800-million of renewable projects that are already under construction. Notably, a clear approach was adopted on TA's deconsolidated cash flows with a debt/EBITDA target of 3.0 times or less and a dividend policy of between 10-15 per cent of the deconsolidated cash flow from operations to common shareholders."
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