We expect that AltaGas’s US$642 mm acquisition of 3 power plants in California at an effective 9.0x EV/EBITDA multiple will increase its FFO/share by 6% in FY2016 and increase its NAV by 1%. The deal should give AltaGas some additional diversification in the western U.S. power market. We have maintained our 12-month target price of $47.00/share and our Outperform ranking.
01 Oct 2015
California Generation Acquisition Increases Power Division EBITDA By 50%
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California Generation Acquisition Increases Power Division EBITDA By 50%
AltaGas Ltd. (ALA:TSE) | 0 0 0.5% | Mkt Cap: 4,575m
- Published:
01 Oct 2015 -
Author:
Steven I. Paget -
Pages:
5
We expect that AltaGas’s US$642 mm acquisition of 3 power plants in California at an effective 9.0x EV/EBITDA multiple will increase its FFO/share by 6% in FY2016 and increase its NAV by 1%. The deal should give AltaGas some additional diversification in the western U.S. power market. We have maintained our 12-month target price of $47.00/share and our Outperform ranking.