Boralex Earnings: Well-Positioned for North American Development Opportunities

No-moat-rated Boralex reported solid fourth-quarter results. Total power production was roughly in line with anticipated levels, as outperformance in French wind assets was largely offset by underperformance in Canadian wind. Companywide EBITDA grew 32% year on year, driven by increases from its French wind portfolio. For full-year 2023, Boralex’s results benefited by CAD 20 million due to recontracting assets at higher prices. We expect to incorporate the results into our model shortly, but at first glance, we plan to maintain our CAD 36 fair value estimate. We view shares as undervalued.