Brookfield Renewable Partners (BEP-UN.TO) has had its price target cut to US$32 from US$33 but kept its Outperform rating, National Bank of Canada said in a Tuesday note.

The lowered price target was based on the bank's updated fourth-quarter estimates for the company and a long-term discounted cash flow with an 8% discount rate.

With unusually dry conditions in Colombia, the eastern U.S. and Canada, the bank forecast lower prop. generation of 3,920 GWh in Brookfield's hydro portfolio in Q4.

Despite this, its adjusted EBITDA and FFO/unit forecasts remain flat at $622 million (was $614 mln, consensus $613 mln) and $0.48 (was $0.46, cons. $0.46), respectively, with gains from asset sales ($185 mln in other income, was $94 mln).

According to National Bank, "with low valuations of public market assets and a strong growth outlook, the market offers attractive investment opportunities for well capitalized entities". To fund its growth, the bank noted, BEP's asset recycling strategy is "gaining momentum", having completed $2.3 bilion of its $3 bln FY'24 target by Q3'24 with returns ranging from 2.0-3.5x invested capital. BEP's Corporate activities should accelerate, further differentiating its operating model, the bank added.

"We believe BEP should remain a leader in renewable power as demand accelerates in the coming years," National Bank said.

Brookfield's share price was down 1.45% at last look to $33.20.