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 has given his Buy rating due to a combination of factors that highlight Chesapeake Utilities’ strong financial performance and growth potential. The company reported impressive revenue growth in the fourth quarter of 2024, driven by the acquisition of Florida City Gas and an increase in natural gas customers, despite a decline in natural gas prices. This acquisition has bolstered Chesapeake Utilities’ customer base and revenue streams, contributing to a positive outlook.
Additionally, Chesapeake Utilities has maintained its earnings per share guidance for 2025 and 2028, indicating a strong growth trajectory with a projected 10% compound annual growth rate in EPS from 2024 to 2028. The company’s strategic initiatives, including the development of an LNG storage project in Maryland, are expected to further enhance its earnings potential. Furthermore, Chesapeake Utilities’ efforts to strengthen its balance sheet through equity offerings and dividend increases underscore its commitment to financial stability and shareholder value, supporting the Buy rating.
According to TipRanks, Sullivan is an analyst with an average return of -12.3% and a 35.74% success rate. Sullivan covers the Industrials sector, focusing on stocks such as BWX Technologies, Tetra Tech, and ABM Industries.