Analyst James Thalacker of BMO Capital reiterated a Buy rating on Evergy, with a price target of $75.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
James Thalacker has given his Buy rating due to a combination of factors surrounding Evergy’s recent regulatory developments and economic prospects. The company’s Kansas Central rate case settlement, which includes a $128 million revenue increase, represents a significant portion of the initial request and is seen as a favorable outcome. The settlement also specifies a 9.70% return on equity for transmission delivery charges, an improvement from the previous rate, which suggests a more balanced capital structure and potential for better financial performance.
Furthermore, the settlement includes an annual earnings review that shares excess earnings with customers, indicating a more constructive regulatory environment. This, combined with economic development opportunities expected to unfold, positions Evergy well for future growth. With shares trading at a discount, Thalacker sees an attractive risk/reward scenario, supporting the Outperform rating and the unchanged $75 target price.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $74.00 price target.
EVRG’s price has also changed slightly for the past six months – from $62.930 to $68.070, which is a 8.17% increase.