BMO Capital analyst James Thalacker maintained a Buy rating on Black Hills yesterday and set a price target of $68.00.
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James Thalacker has given his Buy rating due to a combination of factors that suggest a favorable outlook for Black Hills. Despite a quarterly earnings estimate that falls below the current consensus, Thalacker sees the company on track to meet the midpoint of its annual guidance. This is supported by expectations of a stronger performance in the fourth quarter, driven by gas-driven rate relief and the resolution of weather-related headwinds.
Additionally, Black Hills’ recent equity issuance has strengthened its financial position, reducing the need for significant financing in the near future. The stock is trading at a significant discount compared to its peers, which presents an attractive risk/reward opportunity. The potential for positive developments, such as progress in large load projects and strategic mergers, further supports the Buy rating as these could enhance growth prospects.
According to TipRanks, Thalacker is a 5-star analyst with an average return of 15.9% and a 73.58% success rate. Thalacker covers the Utilities sector, focusing on stocks such as PG&E, Duke Energy, and PPL.