28 October 2014 Americas/Canada Equity Research Multi Utilities Canadian Utilities Limited (CU.TO) Rating OUTPERFORM* Price (27 Oct 14, C$) 40.00 INITIATION Target price (C$) 46.00¹ 52-week price range 41.27 - 35.12 Market cap. (C$ m) 10,510.64 Core Canadian Growth Supplemented by Enterprise value (C$ m) 17,434.67 *Stock ratings are relative to the coverage universe in each Selected Geographic Expansion analyst's or each team's respective sector. ¹Target price is for 12 months. ■ All About Alberta: We initiate coverage of Canadian Utilities Limited (CU) Research Analysts with an Outperform rating and a C$46 target price. The recent growth in Paul Tan CU's financials is driven largely from its organic utility segment growth owing 416 352 4593
[email protected] primarily to the continued natural resource development in the Province of Andrew M. Kuske Alberta. CU should continue to benefit from the continued growth of this 416 352 4561 natural resource for the foreseeable future. Another positive outcome has
[email protected] been the greater proportion of earnings coming from a more stable source. We believe this organic growth will translate into continued earnings and dividend growth. ■ Geographic Diversification: CU wants to duplicate its success in Alberta to other markets in the globe that have similar characteristics as the Canadian province. The company has targeted Australia and Mexico to supplement its Alberta base growth. We believe with CU can benefit from the natural resources growth in Western Australia (iron ore and LNG) and the planned National Infrastructure Program being implemented in Mexico.