Bank of America Securities analyst Ross Fowler has maintained their neutral stance on SR stock, giving a Hold rating on January 27.
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Ross Fowler has given his Hold rating due to a combination of factors affecting Spire’s financial performance. The company’s first-quarter earnings per share (EPS) of $1.34 fell short of both Bank of America’s estimate of $1.39 and the consensus estimate of $1.41, representing a decline from the previous year’s $1.47. This shortfall is primarily attributed to weaker performance in Spire’s Gas Marketing division, driven by market conditions that have affected earnings volatility and reduced arbitrage opportunities. Additionally, higher transportation and storage fees have contributed to the earnings decline.
Despite these challenges, Spire’s utility earnings have shown growth, supported by new rates in Missouri, Alabama, and other jurisdictions, while midstream earnings have benefited from increased capacity and contract renewals at higher rates. The company has reaffirmed its full-year EPS guidance and long-term growth projections, indicating confidence in its future prospects. However, the ongoing regulatory updates in Missouri and the volatility in Gas Marketing remain key areas of focus, which have contributed to the decision to maintain a Hold rating.
In another report released on January 27, Morgan Stanley also maintained a Hold rating on the stock with a $76.00 price target.
SR’s price has also changed moderately for the past six months – from $63.930 to $71.220, which is a 11.40% increase.