Northland Power Inc. (NPI.TO) was downgraded to Hold from Buy at TD Securities on Friday.

Analyst Sean Steuart lowered his price target on shares of the Canadian power producer to $19 from $22 following its investor day.

Northland announced a 40% dividend cut with its Q3 results on November 12.

The stock has declined approximately 30% in the past week.

"We initially attributed most of the rationale for the cut in dividend to providing more funding flexibility, but yesterday's presentation made it clear that the sell-side, including us, has overly optimistic growth forecasts through 2027," Steuart said in a note to clients.

"NPI us taking a measured approach to organic expansion, reflecting higher IRR hurdles," the analyst said.

"In our view, NPI's slower relative growth outlook supports a valuation discount and a rating downgrade..."

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