Should You Buy Algonquin Power & Utilities Corp (AQN) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
6.470
1 Day change
-1.67%
52 Week Range
6.680
Analysis Updated At
2026/01/28
Buy (beginner-friendly long-term). AQN is in a clear short-term uptrend and sentiment is improving (recent upgrades + hedge fund buying). Even though it looks a bit overheated near-term (high RSI), for an impatient long-term investor with $50k–$100k, the current pre-market level around 6.81 is still a reasonable entry given the rate-case catalyst setup and bullish options positioning.
Technical Analysis
Trend is bullish. Moving averages are stacked positively (SMA_5 > SMA_20 > SMA_200), which typically confirms an uptrend. MACD histogram is above zero and expanding (bullish momentum). Near-term, RSI_6 at ~75.8 indicates the stock is stretched/overbought, so a small pullback risk is elevated—but the trend remains constructive. Key levels: Pivot 6.465. Resistance: R1 6.598, R2 6.681—pre-market at 6.81 is already above R2, suggesting a breakout attempt. Support: 6.331 (S1) then 6.248 (S2). Overall: bullish trend with short-term overbought conditions.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options sentiment is bullish: open interest put/call at 0.62 implies more calls than puts outstanding; volume put/call at 0.2 is strongly call-skewed. Implied volatility (30D ~49.8) is high versus historical volatility (~31.6), suggesting traders are pricing in meaningful movement; IV percentile ~70.8 indicates elevated IV versus its recent history. Today’s option activity is small in absolute terms (12 contracts), but relative volume vs 30-day average is high (~14.5x), reinforcing a sentiment tilt toward upside speculation.
Technical Summary
Sell
4
Buy
7
Positive Catalysts
Rate-case approvals/implementation expected to be catalysts into 2026 (per National Bank), potentially closing ROE and valuation gap vs peers.
Analyst sentiment has recently improved (multiple upgrades).
Hedge funds are buying, with buying amount up ~241.67% last quarter.
increases the odds of a pullback or sideways digestion.
Latest reported profitability weakened sharply YoY (net income and EPS down materially), which can cap upside if rate-case outcomes disappoint.
Elevated implied volatility suggests the market expects uncertainty/event risk, which can amplify near-term swings.
Financial Performance
Latest quarter: 2025/Q3. Revenue rose to $582.7M (+1.66% YoY), and gross margin improved to 62.07% (+0.84% YoY), showing modest top-line growth and stable/improving margin profile. However, net income fell to $36.2M (-102.77% YoY) and EPS to $0.05 (-102.92% YoY), indicating a sharp profitability deterioration versus last year. Overall: operating profile looks steady on revenue/margins, but earnings power is the key weak spot that needs rate-case execution to improve.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend is clearly improving. Janney (2025-11-10) upgraded to Buy with fair value $7 (from $6) after 'strong' Q3 and rate-case execution. National Bank (2026-01-06/07) upgraded to Outperform with PT raised to $7.50 (from $7), citing 2026 catalysts from multiple rate cases. Wall Street pros view: improving fundamentals and identifiable regulatory catalysts. Cons view: recent earnings collapse raises execution/regulatory risk; upside relies on successful implementation of rate cases. No recent news this week, no notable insider trend, and no recent congress trading data available.
Wall Street analysts forecast AQN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AQN is 6.75 USD with a low forecast of 6.5 USD and a high forecast of 7.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast AQN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AQN is 6.75 USD with a low forecast of 6.5 USD and a high forecast of 7.5 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 6.580
Low
6.5
Averages
6.75
High
7.5
Current: 6.580
Low
6.5
Averages
6.75
High
7.5
National Bank
Sector Perform
to
Outperform
upgrade
$7
AI Analysis
2026-01-07
Reason
National Bank
Price Target
$7
AI Analysis
2026-01-07
upgrade
Sector Perform
to
Outperform
Reason
National Bank upgraded Algonquin Power to Outperform from Sector Perform with a price target of $7.50, up from $7. The firm sees catalysts in 2026 from the company's multiple rate cases expected to be approved and implemented. As rate cases are implemented, Algonquin should close its return on equity and valuation gap to peers, the analyst tells investors in a research note.
National Bank
Rupert Merer
Sector Perform -> Outperform
upgrade
2026-01-06
Reason
National Bank
Rupert Merer
Price Target
2026-01-06
upgrade
Sector Perform -> Outperform
Reason
National Bank analyst Rupert Merer upgraded Algonquin Power to Outperform from Sector Perform.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for AQN
