Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Wells Fargo (NYSE:WFC) has raised its price target on Knife River Corp. (NYSE:KNF) to $97.00 from $96.00 while maintaining an Overweight rating on the construction materials company. According to InvestingPro data, the $4.99 billion market cap company currently trades at a P/E ratio of 32.2x, suggesting a premium valuation.
The price target increase comes despite Knife River reporting softer-than-expected second-quarter results and cutting its guidance for the current period. The company maintains solid fundamentals with revenue of $2.95 billion in the last twelve months and a healthy current ratio of 2.78, indicating strong liquidity position.
Wells Fargo noted that the factors driving weakness in Knife River’s performance are "transitory," specifically citing weather issues and Oregon state funding challenges as temporary headwinds.
The firm highlighted Knife River’s growing backlog as a positive indicator, suggesting it could set up the company for "a very strong 2026," while management continues to focus on operational improvements and bolt-on acquisitions.
Wells Fargo adjusted its earnings per share estimates for Knife River to $3.10 for 2025 and $3.45 for 2026, with the new price target representing 11.5 times the firm’s estimated 2026 EBITDA.
In other recent news, Knife River Corporation reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $0.89, outperforming the forecasted $0.73. Additionally, Knife River exceeded revenue projections, reporting $833.8 million compared to the anticipated $799 million. This performance highlights the company’s strong financial results in the recent quarter. The earnings announcement reflects positively on Knife River’s operational efficiency and market position. Analyst firms took note of the company’s ability to outperform projections, though specific upgrades or downgrades were not mentioned. These developments mark significant milestones for Knife River as it continues to navigate the current economic landscape.
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