CIBC Capital Markets analyst Robert Catellier weighed in on the yield-heavy energy infrastructure/power and utilities sectors,
“Questions on potential rate cuts and economic stability likely mean some allocation in utilities makes sense. While some firms are working to cure weaker balance sheets, it seems the market is still shunning turnaround stories .
“We believed sentiment was resoundingly negative and becoming worse. As we approach the end of the first calendar quarter of 2024, we maintain the view that analysts and investors remain overly cautious – fundamental metrics such as earnings, valuation, and operating performance in several areas are showing definitive signs of troughing. However, ‘troughing or bottoming’ is not quite the fuel to spawn the return to the … revival that we still expect to transpire.