Street Calls of the Week
Investing.com - Mizuho raised its price target on Spire (NYSE:SR) to $83.00 from $82.00 on Friday, while maintaining an Outperform rating on the natural gas utility company. The stock, currently trading at $76.08, has delivered a strong 15.96% return year-to-date, according to InvestingPro data.
The research firm cited significant upside potential in Missouri’s actual earned returns in fiscal year 2026 following its rate case, with continued upside as the company shifts to forward-test year ratemaking in approximately fiscal year 2027 and beyond. With a market capitalization of $4.49 billion and a 21-year track record of consecutive dividend increases, Spire has demonstrated consistent shareholder returns.
Mizuho noted that financing terms for Spire’s Piedmont Tennessee acquisition remain to be determined, with analysis suggesting the acquisition will likely be modestly dilutive to near-term adjusted earnings per share.
The firm expects Spire to achieve above its 5-7% earnings growth target through fiscal year 2027, even with possible dilution, viewing the acquisition as beneficial to the company’s long-term investment thesis as it grows scale, increases regulated utility mix, and diversifies jurisdictions.
Mizuho also indicated that Spire’s management intends to release multi-year guidance for fiscal years 2026-2027 adjusted earnings per share in November, which should reassure investors by illustrating the multi-year growth outlook and mitigating concerns around the transaction.
In other recent news, Spire Inc. reported its financial results for the third quarter of 2025, exceeding revenue forecasts. The company achieved an adjusted earnings per share of $0.01, surpassing the anticipated loss of $0.14 per share. Revenue for the quarter reached $421.9 million, which was significantly higher than the expected $354.37 million. In addition to these financial developments, Spire announced a $2.48 billion acquisition of Piedmont Natural Gas. This acquisition has raised concerns among analysts, leading BofA Securities to downgrade Spire’s stock rating from Neutral to Underperform. BofA Securities expressed apprehension about the potential impact of the acquisition on Spire’s near-term financial performance. The firm also adjusted its price target for Spire to $76.00, down from $81.00. These developments highlight significant changes and challenges for Spire in the coming months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.