Company Reports

We are maintaining our fair value estimates of USD 28/CAD 38 for Brookfield Renewable Partners and USD 29/CAD 39 for Brookfield Renewable Corp. following first-quarter results. Despite a rise in recent days, we still view the shares as undervalued.

On May 1, Brookfield Renewable announced a first-of-its-kind framework agreement with Microsoft to support its sustainability goals via the buildout of new renewable power capacity globally. We are maintaining our $28 (CAD 38) and $29 (CAD 39) fair value estimates for Brookfield Renewable Partners and Brookfield Renewable Corp., respectively. We view shares as undervalued.

We maintain our $28 (CAD 38) fair value estimate for Brookfield Renewable Partners following third-quarter results. Additionally, we maintain our $29 (CAD 39) fair value estimate for Brookfield Renewable Corp. We view shares as slightly undervalued. Our no-moat ratings are also unchanged.

On Dec. 4 shareholders of Origin Energy rejected a Brookfield-led takeover proposal. The final vote tally was 69% in favor, below the 75% threshold required. The failed vote is not a major surprise following news that AustralianSuper, which owns about 17% of Origin, was opposed to the deal. In its response, Brookfield noted it will "evaluate its next steps" and hinted it remains interested in a potential deal. We would not rule out continued interest from Brookfield in a deal but also expect the company to weigh further consideration against alternative investment options for the company's capital. We would expect the company to find other investment opportunities in the event it walks away from Origin for good and, thus, don't expect the ultimate Origin outcome to materially affect our fair value estimate.

Brookfield Renewable holds a well-diversified global portfolio of clean energy technologies assets. The company targets 12%-15% returns via a combination of organic growth and acquisitions. Brookfield takes a primarily contrarian approach to acquisitions.

We maintain our $31 (CAD 42) fair value estimate for Brookfield Renewable Partners following third-quarter results. Additionally, we maintain our $32 (CAD 43) fair value estimate for Brookfield Renewable Corp. We view shares as undervalued.

Brookfield Renewable holds a well-diversified global portfolio of clean energy technologies assets. The company targets 12%-15% returns via a combination of organic growth and mergers and acquisitions. Brookfield utilizes a primarily contrarian approach to M&A.

We lower our fair value estimate for Brookfield Renewable Partners to $31 (CAD 42) from $32 (CAD 43) following second-quarter results and after updating our model for recent transactions. Additionally, we lower our fair value for Brookfield Renewable Corp. to $32 (CAD 43) from $33 (CAD 44). We view shares as undervalued.

We expect to maintain our $32 (CAD 43) and $33 (CAD 44) fair value estimates for Brookfield Renewable and Brookfield Renewable Corp., respectively, following the acquisition of a renewable portfolio from Duke Energy. We view shares as fairly valued.

We maintain our $32 (CAD 43) fair value estimate for Brookfield Renewable Partners and $33 (CAD 44) for Brookfield Renewable Corp. following first-quarter results. We view shares as fairly valued at current levels.

We do not plan to materially change our fair value estimate for Brookfield Renewable following the announcement that the company, along with an EIG consortium, has signed a binding agreement to acquire Australia-based Origin Energy. We view the shares of Brookfield Renewable as slightly undervalued at current levels.

We lower our fair value estimate for Brookfield Renewable Corp. to $33 (CAD 44) per share from $34 (CAD 46) following its fourth-quarter results. The primary driver of our lower fair value estimate is a slightly lower terminal multiple as we adjust for Brookfield Renewable's growing share of energy transition investments. We view shares as slightly undervalued at current levels.

Brookfield Renewable holds a well-diversified global portfolio of clean energy technologies assets. The company targets 12%-15% returns via a combination of organic growth and mergers and acquisitions. Brookfield utilizes a primarily contrarian approach to M&A.

We maintain our $37/CAD 48 fair value estimate for Brookfield Renewable Corp. following its investor day. We view the shares as increasingly attractive in light of their recent selloff.

We've raised our fair value estimate for Brookfield Renewable to $37/CAD 48 per share from $35/CAD 45 following second-quarter results. The primary driver of our increase is higher power prices for the company's U.S. hydro portfolio and increasing our terminal multiple for upside potential from U.S. policy. We've also updated our Uncertainty Rating to Medium from High, given the company's largely contracted portfolio and diversification.

Brookfield Renewable possess a well-diversified portfolio of 21 gigawatts (consolidated) across clean energy technologies and geographies. The company targets 12%-15% returns via a combination of organic growth and mergers and acquisitions. Brookfield utilizes a primarily contrarian approach to M&A.

We maintain our $35 (CAD 45) fair value estimate for Brookfield Renewable Corp. following its Q1 results.

Brookfield Renewable possess a well-diversified portfolio of 21 gigawatts (consolidated) across clean energy technologies and geographies. The company targets 12%-15% returns via a combination of organic growth and mergers and acquisitions. Brookfield utilizes a primarily contrarian approach to M&A.

We are initiating coverage of Brookfield Renewable Corp. with a no-moat, stable trend rating and $35/CAD 44 fair value estimate. We view Brookfield as a strong allocator of capital, hence our Exemplary capital allocation rating, but we believe the shares are overvalued at current prices and encourage investors to be patient.

Brookfield Renewable possess a well-diversified portfolio of 21 gigawatts (consolidated) across clean energy technologies and geographies. The company targets 12%-15% returns via a combination of organic growth and mergers and acquisitions. Brookfield utilizes a primarily contrarian approach to M&A.