The Globe and Mail reports in its Wednesday edition that Desjardins's Brent Stadler has reaffirmed his "buy" call for Capital Power. The Globe's David Leeder writes that Mr. Stadler boosted his share target by a loonie to $54. Analysts on average target the shares at $44.09. Mr. Stadler considers Capital Power's potential one-gigawatt offtake of artificial intelligence/data centre load at its Genesee generating station near Genesee, Alta., as a significant "near-term catalyst." Mr. Stadler says in a note: "We believe Capital Power could look to contract 1GW from its Genesee facility to satisfy the incremental load, which we estimate would be accretive to NAV by $3 to $9 per share (base case implies $5.50) and potentially drive incremental annual EBITDA and FCF (we estimate first full year in 2027) of $80-million to $150-million and $75-million to $140-million, respectively. G1 and G2 will be the most efficient gas baseload facilities in Canada and will likely be very attractive to tech companies looking to power AI/data centres in Alberta. ... In our view, an AI/data centre contract at Genesee is possible in the coming six to 12 months although there are still some details to iron out."
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