: Algonquin Power and Utilities can boost earnings, its dividend and its stock with proper sale of renewables assets, Starboard says

Activist investor Starboard Value LP believes Algonquin Power & Utilities Corp. AQNCA:AQN could boost shareholder value, raise its dividend and cut its debt with a “properly executed” sale of all or most of the company’s renewable energy business. Starboard, which is Algonquin’s largest shareholder with a 7.5% stake, said without the renewables business, “Algonquin is significantly greener than peers,” as one-third of its electric generation capacity comes from renewables with no coal exposure, compared with an average of 26% for its regulated utility peers. Starboard believes that with a proper sale of the renewables assets, the company could target of 75 cents in fiscal 2025 earnings per share is achievable, which is well above the current FactSet consensus of 63 cents. Algonquin’s stock fell 0.8% in premarket trading. It has lost 37.7% over the past 12 months through Wednesday, while the Utilities Select Sector SPDR exchange-traded fund XLU has slipped 4.9% and the S&P 500 SPX has advanced 15.7%.

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