Anthony Crowdell, an analyst from Mizuho Securities, maintained the Sell rating on Avista (AVA – Research Report). The associated price target is $32.00.
Anthony Crowdell has given a Sell rating to Avista’s stock based on a confluence of challenging factors and anticipated financial needs. Avista’s recent rate case filing with the Washington Utility and Transportation Commission outlines a revenue requirement that steps down over a two-year period, reflecting a shift in Colstrip ownership costs away from customers. Additionally, Avista has proposed modifications to its Energy Recovery Mechanism (ERM) which would alter the sharing of over/under budgeted power costs between the company and its customers, although this is not guaranteed to be approved by the commission.
Furthermore, Crowdell’s analysis suggests that Avista’s capital expenditures forecast indicates a potential shortfall in equity issuance compared to historical levels, which may necessitate additional equity to support their capital plan. He underscores that the Washington jurisdiction remains challenging for Avista and that further equity needs could be on the horizon. These factors contribute to Mizuho Securities’ Underperform rating and establish a cautious outlook on the company’s financial health and regulatory environment.
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Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AVA in relation to earlier this year.
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Avista (AVA) Company Description:
Avista Corp. is a holding company, which engages in the provision of electric and natural gas utility business. It operates through the Avista Utilities; and Alaska Electric Light and Power Company (AEL&P) segments. The Avista Utilities segment includes electric distribution and transmission, and natural gas distribution services in parts of eastern Washington, Northern Idaho, and Northeastern and Southwestern Oregon. The AEL&P segment offers electric services in Juneau. The company was founded on March 13, 1889 and is headquartered in Spokane, WA.
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