11:52 AM EDT, 06/21/2024 (MT Newswires) -- BMO Capital Markets on Friday reiterated its outperform rating on the shares of Innergex Renewable Energy ( INGXF ) after the company sold a minority stake in its Texas renewable-power assets for US$188 million.

"INE's minority sale of its Texas renewable fleet for US$188M strengthens its balance sheet and unlocks value but the implied 9x EV/EBITDA sale valuation was underwhelming in our opinion. While we view the transaction as neutral (no expected change in FCF/sh), our target price goes to $11 vs. $9, reflecting the recent decline in 10-year Government of Canada bond yields and improved renewables sentiment of late (target valuation to 10.5x EBITDA vs. 10x). Maintain Outperform rating," analyst Ben Pham wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 10.18, Change: -0.06, Percent Change: -0.59