TD Securities Upgrades Canadian Utilities (TSE:CU) to “Strong-Buy”

Canadian Utilities (TSE:CU) was upgraded by research analysts at TD Securities from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Wednesday, Zacks reports.

A number of other brokerages also recently issued reports on CU. BMO Capital Markets boosted their price objective on shares of Canadian Utilities from C$50.00 to C$55.00 and gave the company a “market perform” rating in a research report on Thursday, July 30th. National Bank Financial raised their target price on Canadian Utilities from C$51.00 to C$55.00 and gave the stock a “sector perform” rating in a report on Thursday, July 30th. TD lifted their target price on Canadian Utilities from C$52.00 to C$57.00 and gave the company a “buy” rating in a research report on Wednesday. Canadian Imperial Bank of Commerce reduced their price target on Canadian Utilities from C$55.00 to C$52.00 in a research report on Tuesday, September 22nd. Finally, Royal Bank Of Canada raised their price objective on Canadian Utilities from C$50.00 to C$58.00 and gave the stock a “sector perform” rating in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of C$54.71.

Canadian Utilities Stock Performance

CU opened at C$49.40 on Wednesday. The company has a current ratio of 1.80, a quick ratio of 1.30 and a debt-to-equity ratio of 184.88. The company has a market cap of C$13.45 billion, a price-to-earnings ratio of 308.75, a PEG ratio of 2.38 and a beta of 0.36. The company’s 50 day moving average is C$51.74 and its 200 day moving average is C$51.09. Canadian Utilities has a 12-month low of C$38.51 and a 12-month high of C$56.90.

Canadian Utilities (TSE:CU) last announced its earnings results on Wednesday, July 29th. The company reported C$0.51 EPS for the quarter. Canadian Utilities had a net margin of 3.30% and a return on equity of 1.88%. The business had revenue of C$914.00 million during the quarter. On average, equities research analysts predict that Canadian Utilities will post 2.4063556 EPS for the current year.

Key Stories Impacting Canadian Utilities

Here are the key news stories impacting Canadian Utilities this week:

• Positive Sentiment: TD Securities upgraded CU from “hold” to “strong buy,” providing the strongest bullish signal among the recent analyst actions. Canadian Utilities stock rating upgraded by TD Securities
• Positive Sentiment: TD also raised its price target from C$52 to C$57 and assigned a “buy” rating, implying meaningful potential appreciation from recent trading levels.
• Positive Sentiment: Royal Bank of Canada increased its target from C$58 to C$63, while National Bank Financial lifted its target from C$55 to C$56. Both maintained “sector perform” ratings, indicating upside potential but limited conviction that CU will outperform its industry.
• Positive Sentiment: Emera has agreed to acquire Canadian Utilities in a reported C$14.3 billion transaction, with the deal linked to a broader infrastructure investment plan and rising electricity demand from artificial intelligence and data centers. The proposal could support a takeover-related valuation premium. Emera to buy Canadian Utilities in a deal tied to AI power demand
• Neutral Sentiment: Coverage highlights that CU’s shares have gained approximately 95% and may continue trading at a premium, but the stock’s elevated valuation leaves less room for error. Canadian Utilities stock may trade at a premium
• Negative Sentiment: Commentary has questioned the strategic logic and financial details of Emera’s acquisition, creating uncertainty about regulatory approval, deal execution and the ultimate benefits to CU shareholders. That uncertainty may be contributing to profit-taking after the substantial rally. The logic behind Emera’s acquisition of Canadian Utilities

About Canadian Utilities

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company’s main divisions include electricity (generation, transmission, and distribution), pipelines & liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States and Mexico. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta.