Jefferies lowers Avista stock price target to $40 from $44

Published 06/06/2025, 12:28
Jefferies lowers Avista stock price target to $40 from $44

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.