Analyst Ross Fowler of Bank of America Securities reiterated a Buy rating on Evergy, with a price target of $74.00.
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Ross Fowler has given his Buy rating due to a combination of factors related to Evergy’s recent regulatory settlement and financial outlook. The settlement reached in the EKC rate case resulted in a $128 million increase in annual revenue requirements, which is a significant portion of the company’s original request. This outcome is seen as favorable, especially considering the challenging regulatory environment in Kansas. The agreed-upon pre-tax rate of return and cost of debt further strengthen Evergy’s financial position.
Additionally, the settlement implies a return on equity of 9.7% and a balanced capital structure, which are positive indicators for investors. Despite potential headwinds from previous outages and weather-related impacts, the positive settlement outcome is expected to mitigate these challenges. The investment case for Evergy is bolstered by anticipated large load developments and potential revisions to guidance, making it an attractive option for investors.
According to TipRanks, Fowler is a 4-star analyst with an average return of 3.7% and a 59.64% success rate. Fowler covers the Utilities sector, focusing on stocks such as Northwestern, Alliant Energy, and PG&E.
In another report released on July 11, UBS also maintained a Buy rating on the stock with a $78.00 price target.