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On Friday, Jefferies analysts revised the price target for Avista stock, listed on the New York Stock Exchange under the ticker (NYSE:AVA), to $40 from the previous target of $44. The analysts maintained their Hold rating on the stock, aligning with the broader analyst consensus. According to InvestingPro data, analyst targets for Avista range from $38 to $49, with the stock currently trading near $37.
The decision to adjust the price target comes as electric peer average 2027 price-to-earnings ratios have contracted since the last update. Currently trading at a P/E ratio of 17.3x, the $3 billion utility company has maintained a consistent dividend track record, having paid dividends for 55 consecutive years with a notable current yield of 5.27%. The analysts recognized the impact of regulatory and legislative initiatives, as well as the potential for accelerated growth through request for proposal (RFP) opportunities.
Despite these factors, the analysts noted that Avista’s average growth and exposure to wildfire risks justify a discount. The stock is trading more in line with other small-cap companies that have similar fundamentals.
Avista continues to be viewed as a Hold by Jefferies, indicating that the analysts believe the stock will perform in line with the market or sector average. The updated price target reflects the current market conditions and the company’s specific challenges and opportunities.
In other recent news, Avista Corporation reported its first-quarter earnings for 2025, with an earnings per share (EPS) of $0.98, slightly below the analysts’ forecast of $1. Despite this, the company saw an 8% increase in revenue year-over-year, reaching $603 million. Avista reaffirmed its 2025 earnings guidance, projecting EPS between $2.52 and $2.72. This announcement comes as Avista also seeks to expand its energy capacity, issuing a request for proposals to secure up to 425 megawatts for summer and 415 megawatts for winter. The company is focused on meeting the requirements of Washington’s Clean Energy Transformation Act and aims to provide carbon-neutral electricity by 2030. Additionally, Avista has reached a settlement in principle for litigation related to the Babb Road Fire, with no expected impact on earnings due to insurance coverage. In regulatory developments, Avista is monitoring federal tariff changes and has made adjustments to its supply chain to mitigate risks. The company is also exploring potential new large load customers and grid infrastructure enhancements as part of its growth strategy.
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