Ross Fowler, an analyst from Bank of America Securities, maintained the Buy rating on Northwestern (NWE – Research Report). The associated price target is $62.00.
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Ross Fowler’s rating is based on a combination of factors indicating a positive outlook for NorthWestern Energy Group. The company’s FY24 earnings showed year-over-year growth due to rate relief in Montana and South Dakota, higher electric transmission revenues, and favorable tax benefits, despite facing some challenges like increased operating costs and interest expenses. The projected FY25 earnings per share (EPS) are expected to exceed consensus estimates, reinforcing confidence in the company’s performance.
Moreover, NorthWestern’s reaffirmation of a 4%-6% long-term EPS growth, without the need for equity issuance, highlights its stable financial strategy. The expansion of the capital expenditure plan and the focus on data center and transmission opportunities further supports growth prospects. Although regulatory challenges exist, particularly in Montana, the conclusion of the election year provides hope for a favorable final rate order, improving the investment thesis. These elements collectively justify the Buy rating for NorthWestern Energy Group.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NWE in relation to earlier this year.