Algonquin Power Shares Exceed Analyst Target, Prompting Reevaluation
Recently, shares of Algonquin Power & Utilities Corp (Symbol: AQN) have surpassed the average analyst 12-month target price of $5.58, trading at $5.99 per share. When a stock meets its analyst target, analysts face two options: downgrade on valuation or adjust the target price higher. Their reactions often depend on recent business developments that may be influencing the stock’s upward movement. If the company’s outlook is improving, an upward adjustment of the target price might be warranted.
In the Zacks coverage universe, 11 analysts contribute to the average target for Algonquin Power & Utilities Corp. However, this average reflects a range of opinions. Some analysts have lower targets—one at $4.75—while others are more optimistic, with a high target of $7.50. The standard deviation among these targets is $0.772, indicating some level of disagreement among analysts.
The purpose of examining the average AQN price target is to leverage a “wisdom of crowds” approach. By aggregating the insights of multiple analysts, investors gain a broader perspective rather than relying solely on one individual expert. With AQN now above its average target price of $5.58 per share, investors should take the opportunity to assess the company further. They might consider whether $5.58 is merely a stepping stone towards a higher target or if the current valuation has become excessive, prompting thoughts of selling some shares.
| Recent AQN Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 2 | 2 | 2 | 2 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 9 | 9 | 9 | 9 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.64 | 2.64 | 2.64 | 2.64 |
The average rating listed is from 1 to 5, where 1 signifies a Strong Buy and 5 indicates a Strong Sell. This article utilized data from Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
