Chesapeake Utilities (CPK – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Tate Sullivan from Maxim Group maintained a Buy rating on the stock and has a $148.00 price target.
Tate Sullivan’s rating is based on Chesapeake Utilities’ strategic growth initiatives and strong market positioning. The company is poised for expansion in Delaware and Florida, driven by significant housing development and infrastructure projects. This growth is supported by a substantial capital expenditure plan of $625 million over the next five years, aimed at enhancing natural gas infrastructure to meet increasing demand.
Additionally, Chesapeake Utilities’ Investor Day highlighted the potential for increased natural gas supply to support future rocket launches at Cape Canaveral, which could drive further business opportunities. The company’s solid investment grade rating from Fitch and its plans to raise capital through an equity offering to improve its equity-to-total capitalization ratio further bolster the Buy rating. These factors, combined with a projected earnings per share growth, underpin Sullivan’s confidence in the company’s future performance.
Sullivan covers the Industrials sector, focusing on stocks such as ABM Industries, Seanergy Maritime, and Tetra Tech. According to TipRanks, Sullivan has an average return of -12.8% and a 33.67% success rate on recommended stocks.