In a report released today, Ross Fowler from Bank of America Securities reiterated a Buy rating on IdaCorp (IDA – Research Report), with a price target of $127.00.
Ross Fowler has given his Buy rating due to a combination of factors that highlight IdaCorp’s strong growth potential and financial health. The company’s recent earnings call underscored a robust growth trajectory, with an estimated long-term EPS growth of approximately 8%, supported by a 16% rate base growth. This growth is underpinned by substantial equity and debt funding, and a high level of visibility into converting load growth into earnings, thanks to signed contracts.
Moreover, IdaCorp benefits from a positive regulatory environment in Idaho, which has attracted significant customer contracts, contributing to an updated five-year load growth estimate of 8.3%. The company’s capital expenditure plans, which include both contracted and highly visible projects, further bolster its growth outlook. Ross Fowler also notes the potential for additional capital expenditures, which could enhance growth prospects. The combination of a constructive regulatory framework, a capable management team, and a solid balance sheet provides confidence in IdaCorp’s ability to capitalize on this growth opportunity, justifying the Buy rating with a price objective of $127.
Fowler covers the Utilities sector, focusing on stocks such as Constellation Energy Corporation, American States Water, and Edison International. According to TipRanks, Fowler has an average return of 3.0% and a 58.28% success rate on recommended stocks.
In another report released on February 21, Guggenheim also maintained a Buy rating on the stock with a $121.00 price target.