Evergy, MDU Set For Growth But Black Hills Faces EPS Headwinds, Says BofA Analyst
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Ross Fowler has provided updated ratings and price targets for four US utilities. Evergy and MDU Resources are rated as Buy, with price targets of $66 and $28, respectively, due to favorable growth prospects. OGE Energy is rated Neutral with a $40 target, while Black Hills Corporation is rated Underperform with a $59 target, facing EPS headwinds due to debt maturities.
September 12, 2024 | 6:30 pm
News sentiment analysis
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NEGATIVE IMPACT
Black Hills Corporation is rated Underperform by BofA with a $59 price target. The company faces EPS headwinds due to significant debt maturities.
The Underperform rating and EPS headwinds from debt maturities suggest a negative outlook. The financial challenges could pressure the stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEUTRAL IMPACT
OGE Energy is rated Neutral by BofA with a $40 price target. While growth potential exists, regulatory challenges and capital investment needs present risks.
The Neutral rating reflects a balanced view. Growth potential is offset by regulatory and investment challenges, suggesting limited short-term price movement.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Evergy is rated Buy by BofA with a $66 price target. The company is trading at a 10% discount compared to peers, with an improving regulatory environment in Kansas supporting growth.
The Buy rating and price target suggest a positive outlook. The discount to peers and favorable regulatory environment indicate potential for price appreciation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
MDU Resources is rated Buy by BofA with a $28 price target. The company is transitioning to a regulated utility and pipeline operator, with a projected 6-8% EPS growth rate.
The Buy rating and growth projections suggest a positive outlook. The transition to a regulated utility supports long-term growth potential.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100