Evergy, MDU Set For Growth But Black Hills Faces EPS Headwinds, Says BofA Analyst

BofA Securities analyst Ross Fowler reinstated coverage on four US utilities in the Great Plains.

The analyst reaffirmed the Buy rating at Evergy, Inc. (NASDAQ:EVRG) and MDU Resources Group, Inc. (NYSE:MDU).

Meanwhile, Fowler reiterated the Neutral rating on OGE Energy Corp (NYSE:OGE) and Underperform rating on Black Hills Corporation (NYSE:BKH).

EVRG: The analyst kept the price target at $66. The analyst says that despite trading at a 10% discount compared to peers on a 2026E P/E basis, the improving Kansas regulatory environment, which supports higher rate base growth, appears undervalued.

The analyst estimates FY24, FY25 and FY26E EPS at $3.86, $4.09 and $4.30, respectively, all above consensus.  

Fowler writes that consensus EPS estimates for FY26 and FY27 remain largely unchanged despite the benefits from House Bill 2527.

MDU: The analyst reiterated the price target of $28. Fowler believes the current 15% discount to ...