11:16 AM EDT, 03/24/2026 (MT Newswires) -- TransAlta ( TAC ) has "solid" cash flow generation and a supportive capital allocation framework as it hopes to get bigger, RBC Capital Markets analysts said in a Tuesday note to clients.

Analysts said that TransAlta ( TAC ) has "attractive" earnings before interest, taxes, depreciation, and amortization, or EBITDA, and free cash flow per share growth rates.

At its investor day event, TransAlta ( TAC ) announced a 2029 EBITDA trajectory of between $1.35 billion and $1.80 billion, implying a three-year compound annual growth rate of 11% to 22% compared with the 2026 guidance range midpoint of $1 billion, analysts noted.

RBC said that the 2029 EBITDA trajectory assumes net load growth of 900 megawatt, or MW, to 1,300 MW in Alberta, and power prices that average mid-$80 per megawatt-hour, or MWh, to low $120 per MWh.

Analysts said that even by assuming power prices at a "conservative" $60 per MWh, they expect the company to report a three-year free cash flow per share compound annual growth rate of around 20%, an "attractive" figure.

RBC has an outperform rating on the stock and a 24 Canadian Dollar ($17.46) price target.

Price: 12.70, Change: +0.67, Percent Change: +5.57