Spire Inc. Hold Rating: Balancing Below-Average Growth and Regulatory Challenges

Bank of America Securities analyst Ross Fowler maintained a Hold rating on Spire (SR – Research Report) on May 9 and set a price target of $73.00.

Ross Fowler has given his Hold rating due to a combination of factors affecting Spire Inc. The company’s earnings growth is projected to be below average at 5.8%, which does not align with its target rate base growth of 7-8%. This discrepancy is compounded by challenges such as earnings per share (EPS) volatility influenced by weather conditions, regulatory delays in Missouri, and the impact of equity and debt financing.
Furthermore, while Spire has maintained its fiscal year 2025 EPS guidance, there have been adjustments in the earnings contributions from various segments, with a notable decrease in utility earnings. The Missouri rate case is a significant factor, as it could potentially improve regulatory lag. However, despite recent legislative improvements, the risk/reward profile remains balanced due to Spire’s below-average growth and relatively weaker balance sheet. Consequently, the price objective has been updated to $73, reflecting a slight downside risk.

Fowler covers the Utilities sector, focusing on stocks such as Consolidated Edison, Northwestern, and Public Service Enterprise. According to TipRanks, Fowler has an average return of 3.6% and a 59.89% success rate on recommended stocks.