Wells Fargo analyst Sarah Akers reiterated a Buy rating on Evergy (EVRG – Research Report) today and set a price target of $74.00.
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Sarah Akers’s rating is based on several positive developments regarding Evergy’s financial outlook. The Kansas Corporation Commission (KCC) Staff recommended a significant rate increase for Evergy, which, although not the full amount requested, represents a substantial improvement over previous cases. The recommended return on equity (ROE) of 9.7% is a notable enhancement compared to the earlier approved 9.3%, indicating a more favorable regulatory environment for the company.
Additionally, the equity ratio of nearly 49% is seen as a solid foundation for ongoing settlement discussions, suggesting a more balanced capital structure. These factors contribute to a cautiously optimistic view of Evergy’s future performance, leading to the reaffirmation of an Overweight rating, which aligns with a Buy recommendation. Overall, these elements combined present a promising outlook for Evergy’s stock, justifying the Buy rating.
According to TipRanks, Akers is a 4-star analyst with an average return of 8.8% and a 67.50% success rate. Akers covers the Utilities sector, focusing on stocks such as Centerpoint Energy, Portland GE, and Sempra Energy.
In another report released on May 29, Barclays also maintained a Buy rating on the stock with a $71.00 price target.