Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRicardo PillaiSun, June 7, 2026 at 11:22 PM GMT+2 3 min readIs TAC a good stock to buy? We came across a bullish thesis on TransAlta Corporation on Valueinvestorsclub.com by jd5318. In this article, we will summarize the bulls’ thesis on TAC. TransAlta Corporation's share was trading at $13.57 as of May 25th. TAC’s trailing and forward P/E were 708.69 and 133.33 respectively according to Yahoo Finance.JPMorgan Raises its Price Target on Vistra (VST)TransAlta Corporation is Alberta’s largest power generator, with an equity value of roughly C$5 billion, trading at over 5.5x forward free cash flow and closer to ~11x on consensus implied trough expectations, positioning it at the low end of North American power peers. The company operates an integrated devco-propco model across Canada and the U.S., with a balanced fleet split between renewables and natural gas.Read More: 15 AI Stocks That Are Quietly Making Investors RichRead More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside PotentialWhile the market currently prices TransAlta as a cyclical Alberta merchant power producer facing oversupply from new gas capacity and weaker 2026–2028 pricing, this view assumes a static business model and underappreciates structural changes underway. The acquisition of Heartland consolidates a significant portion of Alberta’s peaking fleet, enabling more rational dispatch and improved capture of scarcity-hour pricing in an increasingly volatile renewables-heavy grid.As reliability becomes more valuable, TransAlta’s controlled peaker portfolio stands to benefit disproportionately from tightening supply-demand conditions and potential market design changes that reward dispatchable capacity. In parallel, the company is well positioned for emerging AI-driven data center demand in Alberta, where hyperscale workloads require gigawatt-scale power access, fast interconnection, land, permitting, and increasingly clean-energy integration.TransAlta’s grid-connected sites, development optionality, and renewable footprint align well with these requirements, supported by early strategic steps including its Brookfield partnership announcement. While risks remain around timing of supply absorption, current valuation around $18 per share suggests investors are already compensated to wait. With improving scarcity economics, potential AI-driven load growth, and portfolio consolidation benefits, TransAlta offers meaningful rerating potential and a more resilient earnings profile than the market currently reflects.Previously, we covered a bullish thesis on Vistra Corp. (VST) by desperate-pleasures in March 2025, which highlighted AI-driven electricity demand, nuclear and gas generation exposure, and strong capital return programs including buybacks and insider buying. VST’s stock price has appreciated by approximately 23.17% since our coverage. jd5318 shares a similar view but emphasizes TransAlta Corporation’s Alberta peaker consolidation and AI-driven data center demand shaping scarcity pricing and rerating potential.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info