09:09 AM EDT, 08/01/2024 (MT Newswires) -- National Bank noted that TransAlta ( TAC ) reported Q2 2024 adj. EBITDA of $312 million vs. its $289 mln estimate and vs a Street estimate of $279 mln), while reaffirming 2024 financial guidance including adj. EBITDA of $1.15-$1.3 billion (NBF forecast $1.25 bln) and FCF of $450-$600 mln.

On overall impact, National noted "opportunity knocks."

National said with 2024 guidance intact, and momentum surrounding redevelopment and recontracting opportunities at its legacy thermal sites in Alberta, including the potential for attracting data center co-location customers, the bank expects the shares will continue trading stronger despite ongoing uncertainty surrounding the potential closing of the Heartland Generation acquisition. National -- with an Outperform rating and Target of C413 -- added it will look for an update during the conference call at 11am ET.

National's current $13 target price is based on a risk-adjusted dividend yield of 2.00%, an EV/Free-EBITDA multiple of 8.5x, and its DCF/sh valuation of $14.00.