National Bank Financial on Wednesday reiterated its sector-perform rating on the shares of Fortis (FTS.TO, FTS) while raising its price target to C$63.00 from C$62.00 following third-quarter results from the utility holding company.

"With the U.S. Midwest region experiencing a surge in data center power demand growth, the MISO approved the US$400 mln Big Cedar Load Expansion Project for transmission upgrades to serve up to 1,600 MW of a new data center load, targeting ISDs of 2027 & 2028. Meanwhile, MISO's Long-Range Transmission Plan Tranche 2.1 continues to advance with US$21.8 bln of projects, of which ITC expects at least ~US$3.0 bln in both Michigan and Minnesota, with spend largely expected post-2029. Elsewhere, the company is also assessing vertically integrated rate base upside in Arizona related to emerging data center demand growth, along with incremental distribution demand in Alberta. Overall, based on a modest bump to our long-term estimates, our target nudges up $1 to $63, and we maintain our Sector Perform rating as we await further clarity surrounding the funding plan associated with incremental growth capital opportunities," analyst Patrick Kenny noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 60.58, Change: -0.41, Percent Change: -0.67