BofA raises IDACORP stock price target to $127, maintains Buy

On Monday, BofA Securities analyst Ross Fowler updated IDACORP, Inc.’s (NYSE: IDA) price target, lifting it to $127.00 from the previous $119.00, while reiterating a Buy rating on the shares. The stock, currently trading near its 52-week high of $120.42, has delivered a strong year-to-date return of 8.74%. Fowler’s optimism is rooted in the company’s growth prospects, which he believes are supported by a combination of favorable regulatory conditions, a competent management team, and a robust balance sheet. According to InvestingPro analysis, IDACORP appears to be trading above its Fair Value, with 8 additional key insights available to subscribers.

Fowler highlighted the adjustment of the electric group average price-to-earnings (P/E) multiple to 16.8x, an increase from the former 15.8x, as the basis for the new price objective (PO). IDACORP currently trades at a P/E ratio of 21.44x, notably higher than the industry average. This change in the industry valuation benchmark reflects the analyst’s confidence in the company’s growth narrative, which he sees as being relatively risk-free due to its transparency and the feasibility of its execution.

IDACORP’s growth story is further bolstered by the potential for additional capital expenditure needs arising from significant customer demands. Fowler notes that these incremental generation capital expenditures could lead to an upward revision of the company’s current growth forecasts.

The analyst also underscored the strategic advantages IDACORP enjoys, including constructive regulation that supports the company’s business environment and a strong leadership team that is capable of steering the company through its growth phases. The company’s strong fundamentals are evidenced by its impressive 55-year streak of maintaining dividend payments, with a current yield of 2.92%. Fowler’s commentary suggests that these factors, combined with IDACORP’s healthy financial position, underpin the company’s ability to capitalize on what he views as a rare growth opportunity in the sector. For a comprehensive analysis of IDACORP’s financial health and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.

In summary, BofA Securities maintains a positive outlook on IDACORP, with the raised price target indicating a belief in the company’s continued ability to grow and deliver value to its shareholders. The analyst’s comments reflect a vote of confidence in IDACORP’s strategic direction and the steps it is taking to secure its position in the market.

In other recent news, IDACORP Inc (NYSE:IDA). reported its fourth-quarter 2024 earnings, exceeding analyst expectations. The company announced an earnings per share (EPS) of $0.70, surpassing the forecasted $0.63, and reported revenue of $411.97 million, significantly higher than the anticipated $306.04 million. IDACORP’s full-year diluted EPS rose to $5.50 from $5.14 in 2023, with net income increasing by $28 million. The company has also updated its ongoing at-the-market (ATM) equity offering program, having sold approximately $92.35 million worth of shares, leaving $207.65 million available for sale. Additionally, IDACORP and its subsidiary Idaho Power Company filed a new registration statement to ensure the continuity of the ATM program. Looking forward, IDACORP has provided an EPS guidance range of $5.65 to $5.85 for 2025, showing confidence in continued growth. The company plans to invest $1.1 billion annually in capital expenditures from 2025 to 2029 to support infrastructure development. Legal counsel Perkins Coie LLP has provided an opinion on the legality of the common stock being offered, ensuring compliance with the new registration statement.

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