Jefferies cuts Idacorp's PT on wildfire risk

IDACORP

01/12/2025 12:04

** Jefferies cuts price target on energy utility company Idacorp IDA.N to $152 from $155, maintains "buy" rating

     ** New PT a 16.1% upside to the stock's last close

     ** Brokerage assumes a slightly lower sector valuation as peer price to earnings ratio for 2028 dropped to 16.0x from 16.3x, and applies a 3% wildfire risk

     ** Says there's a 3% wildfire risk to account for extreme weather exposure, as IDA faces elevated wildfire risk in Idaho, though it has not yet experienced a major event

     ** Jefferies raises co's FY25 EPS estimate by $0.03 on modest operational and maintenance expense pressure, while trimming FY26 by $0.03 to reflect the Idaho Power rate case settlement

     ** Five of eight brokerages rate the stock "buy" or higher and three "hold"; their median PT is $138.5, according to data compiled by LSEG

     ** As of last close, shares up 20.6% YTD

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)

 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))