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On Wednesday, Ladenburg Thalmann analyst Paul Fremont revised the rating for Spire Inc. (NYSE: NYSE:SR) stock, upgrading it from Neutral to Buy and establishing a new price target of $83.00. The upgrade comes as Spire’s stock trades near its 52-week high of $76.41, having delivered an impressive 35.5% return over the past year. Fremont’s decision to upgrade Spire’s stock is based on recent positive developments within the state of Missouri that are expected to benefit the company’s regulatory environment and financial performance. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period.
The analyst pointed out that recent legislative advancements, specifically the passage of Senate Bill 4 by the Missouri Senate late Monday night, have created a more favorable situation for Spire. The bill, if enacted, could lead to improved return on equity (ROE) for the company, which currently stands at 8%. Notably, Spire has maintained a strong track record of shareholder returns, having raised its dividend for 21 consecutive years, with a current yield of 4.15%. Fremont also mentioned that the concerns stemming from a prior whistleblower complaint have been resolved, further clearing the way for Spire’s stock upgrade.
Ladenburg Thalmann’s optimism about Spire’s prospects is reflected in their new financial estimates for the company, which are significantly above the consensus. The firm’s projections for 2027 and 2028 are 10.5% and 15.1% higher than the average analyst estimates, respectively. These bullish estimates are a key factor in the decision to raise the stock’s rating.
In his commentary, Fremont stated, "Given the relatively undemanding implied multiple on the gas utility business, the improving backdrop in Missouri and our above-consensus estimates, we are upgrading to Buy." While the stock trades at a P/E ratio of 18.65, InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value. The company maintains a GOOD overall Financial Health Score, supported by strong price momentum and profitability metrics. For deeper insights into Spire’s valuation and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The upgrade represents a significant shift in Ladenburg Thalmann’s view of Spire, positioning the company as a more attractive investment opportunity according to their analysis. With the upgrade to a Buy rating and a new price target of $83.00, investors may take a renewed interest in Spire’s stock as it reflects the firm’s confidence in the company’s future performance.
In other recent news, Spire Inc. announced that its President and CEO, Steven L. Lindsey, will resume his duties on February 10, 2025, after a health-related leave of absence. During his absence, Scott E. Doyle, the Executive Vice President and Chief Operating Officer, temporarily took over Lindsey’s responsibilities and will continue in his current role after Lindsey’s return. In another development, Spire’s shareholders recently approved executive compensation and elected directors during a virtual meeting with over 90% shareholder participation. The meeting also saw the approval of the Spire 2025 Equity Incentive Plan, despite some opposition, and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for 2025.
Additionally, Spire announced an increased quarterly dividend, continuing a tradition since 1946. The company declared a quarterly common stock dividend of $0.785 per share, payable on April 2, 2025, and a regular quarterly dividend for its preferred stock, payable on May 15, 2025. These announcements highlight recent developments in Spire’s corporate governance and financial strategies.
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