(ALA) AltaGas - Ratings and Ratios

AltaGas Ltd. is a North American energy infrastructure company with a diversified portfolio of utility and midstream assets. The companys Utilities segment provides essential services to approximately 1.6 million customers across several states, including Maryland, Virginia, and Ohio, with a stable and regulated business model. In contrast, the Midstream segment is exposed to the volatility of commodity prices, but has a robust infrastructure with significant extraction processing capacity and raw field gas processing capacity.

The companys diversified revenue streams and geographic presence reduce its dependence on any single market or customer segment. AltaGas also has a presence in the power generation sector, with 508 megawatts of gas-fired power generation capacity in California, providing an additional source of revenue. With a strong foundation in the energy infrastructure sector, AltaGas is well-positioned to capitalize on emerging trends and opportunities in the industry.

From a technical analysis perspective, AltaGas stock price has been trending around its 20-day and 50-day simple moving averages (SMA20 and SMA50), indicating a stable short-term outlook. The stocks relative strength is evident from its position above its 200-day simple moving average (SMA200). With an average true range (ATR) of 0.69, representing 1.82% of the current price, the stocks volatility is relatively contained. Given the current technical setup, a potential price target could be the 52-week high of $40.80, representing a 6.5% upside from the current price.

Fundamentally, AltaGas market capitalization stands at CAD 11.5 billion, with a price-to-earnings (P/E) ratio of 20.19 and a forward P/E of 17.01, indicating a reasonable valuation relative to its earnings. The companys return on equity (RoE) of 6.81% is modest, but consistent with the industry average. By combining the technical and fundamental analysis, a forecast for AltaGas could be: a potential price appreciation to $40.80 in the near term, driven by the companys stable utility segment and robust midstream infrastructure, with a medium-term target of $42-$45, based on the expected growth in demand for energy infrastructure and the companys diversified revenue streams.