With the world making a switch towards cleaner power sources, there appears to be an excellent opportunity for investors today. Indeed, as per projections of Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), over $100 billion worth of investment would be required over the next three decades to foster a low-carbon future. This renewable future points to a rather incredible opportunity for this top TSX stock.
Indeed, as a key renewables player in Canada, Brookfield stands to benefit from these trends. Let’s dive into two reasons why this top TSX stock is worth considering right now.
Analysts are bullish on this top TSX stock
I’m not the only one who thinks Brookfield Renewable is a top TSX stock to hold for the long term.
Naji Baydoun, an analyst at IA Capital Markets, believes that there’s plenty of upside on the horizon for Brookfield Renewable. This company’s development pipeline has shown meaningful growth over the past three years. Currently, Brookfield Renewable aims to maintain 3-5% increase in FFO per share on an annual basis.
That said, the company has been heavily investing to build this pipeline. Accordingly, investors in Brookfield Renewable may need to pay up front for this growth in the way of less capital appreciation over the near term, as earnings numbers are impacted by investment. However, over the longer term, it’s my opinion, and that of various analysts, that Brookfield Renewable will be well positioned for long-term cash flow growth. That’s what it’s all about, isn’t it?
A top-notch value creator
Another reason I consider Brookfield Renewable a top TSX stock in the energy space is the company’s various avenues for growth. As mentioned, the company is investing heavily in organic growth. However, Brookfield has also been a key player in acquiring more capacity as well.
As the company continues to reinvest its cash flows into its core operations, or new M&A deals, investors stand to benefit. I view Brookfield as a high-growth play on the renewable energy segment. This is a company with excellent growth potential sitting on top of a great growth catalyst. There’s a lot to like about where Brookfield is positioned right now.
Indeed, the company’s portfolio of renewable energy assets is impressive. As the company scales, it expects to reduce its costs and increase its margins over time. I think Brookfield is on the cusp of doing great things and consider this current stock price to be a bargain right now for this growth gem.
Through 2025, Brookfield is projecting double-digit cash flow growth per share. Without a doubt, if this materializes, investors can benefit from substantial capital appreciation and dividend income.
Accordingly, for long-term investors who have faith in Brookfield’s management team and believe in the potential of its long-term strategy, this top TSX stock is an excellent option.