Northland Power Earnings: Offshore Wind Projects Advance Amid Challenging Environment

We lower our fair value estimate for Northland Power to CAD 31 from CAD 35 following its second-quarter results. The primary drivers of our lower valuation are a lower medium-term adjusted EBITDA forecast for the company's Spanish onshore renewables assets, as well as a tweak to our terminal multiple. Northland Power shares, along with other renewable developers, have been under pressure year to date as inflation and higher interest rates have roiled the renewables market. However, we see shares as undervalued following the decline.