Scotiabank upgrades Black Hills to Outperform on data center upside

Scotiabank upgraded Black Hills (BKH) to Outperform from Sector Perform with a price target of $81, up from $66. The firm says the company’s upside from “high-probability” data centers in Wyoming “seems too tempting to resist.” The analyst sees potential for significant earnings upside of 35% from the 1.8+GW Crusoe/Tallgrass project alone. While the pending merger of equals presents a near-term overhang, Black Hills shares have limited downside from a deal not closing, the analyst tells investors in a research note. Scotiabank likes the risk/reward at current levels.