TAC Should I Buy
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TransAlta Corp (TAC) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is showing mixed signals with weak technical indicators, neutral sentiment from hedge funds and insiders, and no strong trading signals from proprietary systems. While the company has positive developments in partnerships and dividend increases, its recent financial performance and analyst ratings do not strongly support a buy decision. Holding off for now may be prudent.
The technical indicators for TAC are weak. The MACD is negative and expanding downward, the RSI is neutral at 35.579, and moving averages are converging, indicating no clear trend. The stock is trading near its S1 support level of 12.717, with resistance at 13.33. The short-term trend suggests a 60% chance of a slight decline in the next day (-0.63%) and week (-1.67%), with a potential recovery in the next month (+4.79%).
Partnership with Canada Pension Plan Investment Board and Brookfield to develop a data center in Alberta, including a long-term power purchase agreement for 230 MW.
Dividend increase of 8% and free cash flow of CAD 514 million for
Acquisition of Far North Power Corporation for CAD 95 million, which could enhance long-term growth.
Weak Q4 2025 financial performance, including a net income loss of CAD 62 million and a drop in EPS to -0.
Gross margin decreased by 5.19% YoY, indicating declining profitability.
Analysts have mixed ratings, with one lowering the price target to C$18 and maintaining a Hold rating.
In Q4 2025, revenue increased by 2.26% YoY to CAD 542 million. However, net income dropped by 4.62% YoY to a loss of CAD 62 million, and EPS fell by 4.55% YoY to -0.21. Gross margin also declined by 5.19% YoY to 17.71%. The company projects adjusted EBITDA for 2026 between CAD 950 million and CAD 1.05 billion, which could indicate potential recovery.
Analyst ratings are mixed. TD Securities raised the price target to C$27 with a Buy rating, while Desjardins lowered the price target to C$18 and maintained a Hold rating. This reflects uncertainty in the stock's future performance.
