BMO Capital analyst James Thalacker has maintained their bullish stance on BKH stock, giving a Buy rating on August 20.
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James Thalacker has given his Buy rating due to a combination of factors that highlight the potential for Black Hills to deliver stable and predictable earnings. The company’s unique Large Power Contract Service (LPCS) tariff is a key element, as it provides a stable earnings contribution through a microgrid management fee based on ‘avoided cost’ rate base math. This approach offers the visibility and predictability that investors typically seek, without the typical operational and financial burdens associated with traditional utility models.
Additionally, Thalacker points out that the company’s current market valuation reflects a discount, which may not fully account for management’s execution capabilities and the strength of the balance sheet. The potential for future large load announcements and revisions to the capital plan could further accelerate growth. This, combined with the significant earnings contribution expected from projects like the Crusoe/Tallgrass data center, supports the Buy rating as the company is well-positioned to enhance its growth profile significantly.
In another report released on August 20, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $68.00 price target.
BKH’s price has also changed slightly for the past six months – from $59.650 to $60.250, which is a 1.01% increase.