IdaCorp, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst David Arcaro from Morgan Stanley maintained a Hold rating on the stock and has a $131.00 price target.
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David Arcaro has given his Hold rating due to a combination of factors impacting IdaCorp’s growth prospects. The company is experiencing significant load growth driven by a pro-business environment and diverse industrial expansion in Idaho. However, despite this positive demand backdrop, IdaCorp faces challenges in scaling up its infrastructure due to supply chain constraints, particularly in acquiring necessary equipment like gas turbines and transformers.
Additionally, IdaCorp’s resource adequacy management is undergoing changes as the company shifts away from a major wind project due to permitting risks. This necessitates finding alternative energy sources, which could involve market purchases or new generation facilities. These operational challenges, coupled with the need for balanced equity throughout their expansion plan, contribute to the Hold rating, as they present both opportunities and risks for the company’s future performance.
Arcaro covers the Utilities sector, focusing on stocks such as PG&E, Edison International, and DTE Energy. According to TipRanks, Arcaro has an average return of 14.3% and a 64.56% success rate on recommended stocks.