TA: A better tomorrow

研报英文原文证据摘录

TA: A better tomorrow

RBC Dominion Securities Inc.

Maurice Choy, CFA, CA, CPA (Analyst)

(604) 257-7632, maurice.choy@rbccm.com

Robert Kwan, CFA (Head of Global Power, Utilities &

Infrastructure Research)

(604) 257-7611, robert.kwan@rbccm.com

Greg Andrais, CFA (Senior Associate)

(604) 257-7556, greg.andrais@rbccm.com

June 9, 2026

TransAlta Corporation OutperformRESEARCH A better tomorrow TSX: TA; CAD 17.47; NYSE: TAC

Our view: While we acknowledge the market's pushback on the deal's Price Target CAD 24.00

timing and relative valuation, many of TransAlta's near-term catalysts that Scenario Analysis*

have attracted investors to this stock recently remain in place, with the

share price pullback offering investors a more attractive entry point and a DownsideScenario CurrentPrice TargetPrice ScenarioUpside

stronger pro forma cash flow profile. Also, upcoming events should lead to

a rapid deleveraging in the near-term, alleviating investors' credit concerns. 10.0041% 17.47 24.0039% 32.0085%

As these events unfold, and the company's strategic repositioning (and anyEQUITY *Implied Total Returns

resulting investor turnover) continues to take place over the long-term, we Key Statistics

see TransAlta's share valuation improving more sustainably. Shares O/S (MM): 315.9 Market Cap (MM): 5,519

Dividend: 0.28 Yield: 1.6%

Key points: Float (MM): 315.9 Avg. Daily Volume: 3,006,021

Stating the obvious. We start by acknowledging many investors' feedback RBC Estimates that a 12.5x multiple, large-scale transaction does not immediately come FY Dec 2024A 2025A 2026E 2027E

across as being ideal for TransAlta (at least not in today's setting), EBITDA 1,253.0 1,104.0 979.0 1,133.0

particularly with the stock trading around 10x forward EBITDA, and needing Prev. 965.0 1,025.0