Analyst Ross Fowler from Bank of America Securities maintained a Sell rating on Avista (AVA – Research Report) and keeping the price target at $38.00.
Ross Fowler’s rating is based on Avista’s recent financial performance and future outlook. The company’s first-quarter earnings per share (EPS) for 2025 were slightly below both Bank of America’s and the consensus estimates, indicating potential challenges in meeting market expectations. Although there was an increase in earnings due to rate relief and customer growth, these were partially offset by higher operating and maintenance costs, depreciation, amortization, and other expenses.
Furthermore, Avista’s reaffirmed guidance for fiscal year 2025 suggests increased earnings volatility, primarily due to power costs and the Energy Recovery Mechanism. The company’s long-term growth prospects are also tied to regulatory strategies and resource planning, which may face hurdles. Additionally, the gap between the authorized return on equity and the actual return in Washington remains a concern, as it could affect the company’s financial performance. These factors contribute to the Sell rating, as they indicate potential risks and uncertainties in Avista’s financial outlook.
Fowler covers the Utilities sector, focusing on stocks such as Northwestern, Consolidated Edison, and American Electric Power. According to TipRanks, Fowler has an average return of 3.6% and a 59.89% success rate on recommended stocks.