Company Reports

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.

Clean energy stocks have had a roller-coaster 18 months. Optimism following the passage of the Inflation Reduction Act in August 2022 gave way to rising interest rates in 2023. We highlight three key themes for investors to focus on in 2024: interest rates, U.S. policy, and profitability.

We've trimmed our fair value estimate for no-moat Boralex to CAD 36 per share from CAD 38 following the company's third-quarter results. The slightly lower valuation is a result of tweaks to our medium-term project development assumptions. We view the shares as undervalued.

Boralex is an independent power producer focused on the development and operation of renewable energy facilities in North America and Europe. We view it as a strong developer of renewables amid an increasingly competitive backdrop. We credit the company for its historical focus on under-the-radar and generally smaller projects compared with peers.

We trim our fair value estimate for Boralex to CAD 38 from CAD 39 following the company's second-quarter results. The slightly lower valuation is a result of tweaks to our cost of capital and project return assumptions. We view the shares as undervalued.

Boralex is an independent power producer focused on the development and operation of renewable energy facilities in North America and Europe. We view Boralex as a strong developer of renewables amid an increasingly competitive backdrop. We credit the company for its historical focus on under-the-radar and generally smaller projects compared with peers.

We maintain our CAD 39 fair value estimate for Boralex following the company's first-quarter results. We view the shares as fairly valued.

We lower our fair value estimate for Boralex to CAD 39 per share from CAD 41 following its fourth-quarter results. The change in our fair value is a result of lower near-term results from the company's French wind portfolio following government initiatives and power price moves. We also adjust our Morningstar Uncertainty Rating to Medium from High, in line with other renewable developers under our coverage. We view shares as slightly undervalued.

Boralex is an independent power producer focused on the development and operation of renewable energy facilities in North America and Europe. We view Boralex as a strong developer of renewables amid an increasingly competitive backdrop. We credit the company for its historical focus on under-the-radar and generally smaller projects compared with peers.

We've trimmed our fair value estimate for Boralex to CAD 41 per share from CAD 42 following third-quarter results. Our no-moat rating is unchanged. The primary drivers of the change are recent French policies that are likely to limit some of the upside Boralex was positioned to capture from high power prices. We view shares as slightly undervalued.

Boralex is an independent power producer focused on the development and operation of renewable energy facilities in North America and Europe. We view Boralex as a strong developer of renewables amid an increasingly competitive backdrop. We credit the company for its historical focus on under-the-radar and generally smaller projects compared with peers.

We've raised our fair value estimate for Boralex to CAD 42 per share from CAD 38 following second-quarter results. The primary driver of this increase is raising our revenue forecast sharply over the next few years on elevated French power prices, which we previously underappreciated. We view the shares as slightly overvalued relative to our revised fair value estimate.

Boralex is an independent power producer focused on the development and operation of renewable energy facilities in North America and Europe. We view Boralex as a strong developer of renewables amid an increasingly competitive backdrop. We credit the company for its historical focus on under-the-radar and generally smaller projects compared with peers.

Less than two weeks after seemingly ending prospects of a climate spending bill, Sen. Joe Manchin and Senate Democrats announced support for the Inflation Reduction Act of 2022. While not final, the chances of ultimate passage appear high based on industry reports.

On July 14, U.S. Sen. Joe Manchin, Democrat from West Virginia, indicated that he would not support a reconciliation package with additional climate incentives, seemingly ending the uncertainty of much of the past year. The rumored clean energy package had recently been pegged at around $300 billion and included extensions of existing tax credits for wind and solar as well as potential credits for newer technologies, such as hydrogen, stand-alone energy storage, and support for existing nuclear plants. Incentives for domestic solar manufacturing and electric vehicles were also contemplated.

We are initiating coverage of Boralex with a no-moat, stable trend rating and CAD 38 fair value estimate. We like Boralex’s focus on under-the-radar renewable energy projects and its conservative financing approach. However, we view shares as fairly valued given a modest 1.6% dividend yield and trading at 10% above our fair value estimate.

Boralex is an independent power producer focused on the development and operation of renewable energy facilities in North America and Europe. We view Boralex as a strong developer of renewables amid an increasingly competitive backdrop. We credit the company for its historical focus on under-the-radar and generally smaller projects compared with peers.