Spire rises after Mizuho Securities upgrades to 'outperform'
20/12/2024 17:55
** Shares of natural gas company Spire SR.N rise as much
as 2.2% to $67
** Brokerage Mizuho Securities upgrades stock to
"outperform" from "neutral", raises PT to $76 from $65
** Brokerage says that Wall Street has not yet factored in
the impact of a pending rate case for SR, with its effects
expected to commence in early fiscal year 2026
** SR subsidiary Spire Missouri, in late November, filed a
rate case with Missouri Public Service Commission to change
rates of its utility products
** Although it is in early days, the case has the potential
to correct company's severe underearning in recent years by
addressing ineffective weather normalization mechanisms and
costs of capital - brokerage
** Mizuho Securities has a positive outlook due to the
appointment of a new Chair at the PSC, the possibility of lower
customer bills due to decreased gas costs and favourable
outcomes at peer Missouri utilities
** Two of eleven brokerages rate the stock "buy", eight
"hold" and one "strong sell"; with a median PT of $73
** Including session moves, stock up 6.5% YTD
(Reporting by Neil J Kanatt in Bengaluru)
((Neil.JKanatt@thomsonreuters.com;))