Analyst Note| Andrew Bischof, CFA, CPA |
We are increasing Fortis' fair value estimate to CAD 57 per share, up CAD 1, after Fortis reported second-quarter adjusted earnings of CAD 0.55 per share compared with CAD 0.56 in the same year-ago period. Excluding foreign currency impacts, earnings were up CAD .04 per share. Management reaffirmed 6% dividend growth expectations through 2025, in line with our estimates. Our narrow economic moat and stable moat trend ratings are unchanged. Our fair value increase is due to time value appreciation.