10:47 AM EDT, 05/03/2024 (MT Newswires) -- Algonquin Power & Utilities ( AQNB ) retained its "sector perform" rating and US$7 price target at RBC Capital Markets amid reports of the potential sale of subsidiary Atlantica Sustainable Infrastructure.

Energy Capital Partners is in advanced talks to acquire Atlantica, which is 42%-owned by Algonquin, according to Bloomberg News.

RBC said it expects Algonquin to support the potential sale "at the right price" while noting that the company may face difficulty divesting the stake at a later date outside a sales process.

If Atlantica is sold, RBC said the transaction would be a positive readthrough that Algonquin will be successful in divesting its renewable energy platform.

Algonquin shares traded 0.9% higher at $8.98 at last look on Friday.

Price: 8.99, Change: +0.09, Percent Change: +1.01