Evergy (EVRG) has received a new Buy rating, initiated by BMO Capital analyst, James Thalacker.
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James Thalacker has given his Buy rating due to a combination of factors that suggest a promising outlook for Evergy’s stock. The company is positioned for a potential re-rating, contingent on a balanced outcome in the Kansas Central rate case, which is expected to drive multiple expansion in the near term. Additionally, Evergy’s shares are currently trading at a discount compared to the 2027 utility peer average, indicating room for growth.
Thalacker also highlights Evergy’s proactive steps in working with stakeholders to facilitate investment-friendly legislation and revising its capital plan to align with modernization and economic development opportunities. This strategic alignment is anticipated to enhance the company’s growth prospects, making it competitive with its peers. Furthermore, Evergy’s strong balance sheet, supportive regulatory environments, and potential for earnings upside contribute to a compelling total return opportunity, supported by a target price that reflects a modest premium to the broader utility sector.
In another report released on May 9, Mizuho Securities also maintained a Buy rating on the stock with a $70.00 price target.