Northwestern (NWE) has received a new Hold rating, initiated by BMO Capital analyst, James Thalacker.
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James Thalacker has given his Hold rating due to a combination of factors that present a balanced risk/reward scenario for Northwestern’s stock. The stock is currently trading at an approximate 11% discount compared to the 2027 utility peer group average, which Thalacker views as an appropriate valuation given the company’s current growth profile.
While Northwestern has a straightforward business model and several strengths, such as a strong balance sheet and a regulated growth strategy, its growth in earnings per share and rate base is lower than its peers. Additionally, the company faces challenges from a historically volatile regulatory environment and potential wildfire risks. However, recent legislative changes in Montana may mitigate some of these risks, and future capital plan updates could improve growth prospects. Despite these potential positives, Thalacker maintains a Hold rating as the path to realizing these opportunities requires time and successful execution.
In another report released on May 5, Mizuho Securities also maintained a Hold rating on the stock with a $59.00 price target.