UPDATE: Desjardins Capital Markets Downgrades Atlantic Power to Hold on Weaker Outlook
Desjardins Capital Markets reduced its rating on Atlantic Power (NYSE: AT) from Buy to Hold.
Desjardins Capital Markets commented, "Downgrading to Hold (from Buy); shares likely to remain range-bound until ATP completes recontracting. We continue to see strong intrinsic value in ATP associated with the stable cash flows from its diversified portfolio of power generation assets. We also see near-term growth projects as favourable for the company. However, we believe the shares are likely to remain range-bound in the near term until the company can fully elaborate on the next steps for its Auburndale and Lake assets, as well as the underpinnings for dividend sustainability post-2013. As a result, we recommend that investors take a more cautious stance on the name at the current time."
Atlantic Power closed at $14.84 on Monday.
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