Editor's Note: This analysis was originally published as a stock note by Morningstar Equity Research.

Key Morningstar Metrics for Boralex

• Fair Value Estimate: C$36.00
• Morningstar Rating: ★★★★
• Morningstar Economic Moat Rating: None
• Morningstar Uncertainty Rating: Medium

Boralex BLX unveiled 2030 business and financial targets at its June 17 investor day. The firm plans to double installed capacity to approximately 7 gigawatts and increase EBITDA and discretionary cash flow per share at an 8%-10% compound annual growth rate.

Why it matters: We view the 8%-10% CAGR for key financial metrics as achievable and broadly in line with our expectations.

• We think the financing plan is reasonable, as it expects the majority of required equity investment from excess cash flow (C$1.3 billion) and capital recycling (C$900 million). Equity issuance is expected to be a modest C$500 million.
• The growth plan unveiled relies primarily on organic growth across Boralex’s four key markets: Canada, France, the United States, and the United Kingdom.

The bottom line: We are maintaining our C$36 per share fair value estimate after making only minor adjustments to our financial model.

• We consider the shares to be slightly undervalued, trading approximately 8% below our fair value estimate.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.