Canadian Hydro Developers a high-powered stock

subscribe

Scotia Capital's Ben Isaacson is gushing over the earnings potential of Canadian Hydro Developers Inc., predicting a 300% jump in EBITDA by 2011 and a one-year target price of $7 per share for the sustainable-energy producer.

The company generates about 364 megawatts through run-of-river, wind and biomass plants in British Columbia, Alberta, Ontario and Quebec. It also has several hydroelectric and wind projects in the pipeline.

However, permitting holdups have forced delays on some of those projects, introducing cost overruns. But for Mr. Isaacson, the company is worth the risk. “We believe the company is undervalued,” he said.

Mr. Isaacson expects Canadian Hydro Developers to add about 400 MW of capacity in the short to mid-term. The company's proposed Dunvegan hydro project in Alberta, which may be confirmed by the first quarter of 2009, will also be critical, he said.

“If commissioned on-time and within budget, this project could add up to $1.50 per share to (Canadian Hydro's) stock price,” he said.

Other selling points for Scotia Capital include a strong 19-year management track record and plenty of stock catalysts in the next 12 to 18 months as Canadian Hydro Developers continues to bid for new projects in British Columbia and Ontario.

Mr. Isaacson based his valuation on a 75%-weighted discounted cash flow approach using a 9.5% discount rate. He also used a 25% net asset value calculation.

Related News

 Illinois Could Challenge New York in Utility Innovation

With New Distributed Energy Rebate, Illinois Could Challenge New York in Utility Innovation

NEW YORK - How does the electric utility fit in to a rapidly-evolving energy system? That’s what the Illinois Commerce Commission is trying to determine with its new effort, "NextGrid". Together, we’re rethinking the roles of the utility, the customer, and energy solution providers in a 21st-century electric grid.

In some ways, NextGrid will follow in the footsteps of New York’s innovative Reforming the Energy Vision process, a multi-year effort to re-examine how electric utilities and customers interact. A new approach is essential to accelerating the adoption of clean energy technologies and services in the state.

Like REV, NextGrid is gaining national…

READ MORE
philippines-rankshighest-in-coal-power

Philippines Ranks Highest in Coal-Generated Power Dependency

READ MORE

tesla charging

Tesla updates Supercharger billing to add cost of electricity use for other than charging

READ MORE

sheerness power plant

Alberta gives $40M to help workers transition from coal power jobs

READ MORE

muskrat falls

Planning for our electricity future should be led by an independent body

READ MORE