William Appicelli, an analyst from UBS, reiterated the Buy rating on Spire. The associated price target was raised to $95.00.
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William Appicelli has given his Buy rating due to a combination of factors including a supportive regulatory environment and strategic business decisions that are expected to enhance Spire’s growth trajectory. The company’s operations in Missouri are anticipated to benefit from a favorable regulatory framework, which is likely to drive earnings growth and improve the business mix towards more stable, regulated earnings.
Furthermore, the acquisition in Tennessee is expected to de-risk the business mix, contributing to long-term growth. Although the initial impact of the acquisition might be slightly dilutive, it is projected to become accretive over time as the company integrates the asset and improves its credit metrics. Additionally, Spire’s stock is trading at a discount compared to its peers, which presents an opportunity for investors as the company’s earnings potential is realized. These factors collectively underpin Appicelli’s positive outlook and Buy rating for Spire’s stock.
In another report released on October 7, Jefferies also initiated coverage with a Buy rating on the stock with a $92.00 price target.