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Analyst Actions: Desjardins Upgrades Atlantic Power

It's time to buy shares of Atlantic Power Corp., (ATP.TO) after the stock dropped about 19% over the past week, says Desjardins Securities analyst Jeremy Rosenfield, the Globe & Mail reported.

"The risk-reward opportunity is compelling at current levels," he wrote, pointing out that he considered the pullback overdone. "The shares have slid well below what we consider to be a reasonable floor prices (i.e., $14), to the point where the intrinsic value of ATP's cash flows now outweighs the risks associated with generating those cash flows in the future."

The company "can maintain its current dividend as it pursues near-term growth opportunities; we believe the company would likely look to cut the dividend only if it cannot achieve accretive growth for an extended period of time (i.e., more than a year)."

Rosenfield upgraded the stock to "buy" from "hold" and has a $16 price target.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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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.

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