Evergy (EVRG – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Sarah Akers from Wells Fargo maintained a Buy rating on the stock and has a $60.00 price target.
Sarah Akers has given a Buy rating to Evergy (ticker EVRG) due to a combination of factors including the company’s anticipated earnings growth and recent strategic initiatives. Despite a downward revision in the 2023 earnings per share (EPS) estimate, reflecting a negative weather impact in Q4, Akers remains positive on the stock. The EPS estimates for the years 2024-2026 are unchanged, signaling confidence in the company’s mid-term financial prospects. Moreover, Akers highlights the base year for the projected 4-6% EPS compound annual growth rate (CAGR) remains anchored to the original mid-point estimates, suggesting a solid growth trajectory.
Furthermore, Akers’ optimism is supported by Evergy’s recent filings and legislative activities that could favorably impact future earnings. The MO-West rate case, if successful, promises a substantial rate increase based on a higher return on equity (ROE) than previous cases. Over half of this requested increase is tied to new infrastructure investments, indicating a commitment to growth and efficiency. Additionally, the potential benefits of Kansas House Bill 2527, should it pass, include provisions for enhanced recovery of gas plants and more favorable ratemaking conditions, all of which could strengthen Evergy’s financial position and support the Buy rating.
In another report released on January 22, Barclays also maintained a Buy rating on the stock with a $54.00 price target.
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Evergy (EVRG) Company Description:
Evergy, Inc. is a holding company, which engages in the provision of electricity through its subsidiaries. It focuses on the regulation of electric utilities and development of electric transmission projects. The company was founded in 2017 and is headquartered in Kansas City, MO.
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