Ross Fowler, an analyst from Bank of America Securities, maintained the Buy rating on Northwestern (NWE – Research Report). The associated price target remains the same with $63.00.
Ross Fowler has given his Buy rating due to a combination of factors related to NorthWestern Energy’s recent settlements in their electric and natural gas rate cases. The company has reached a partial settlement in its electric rate case and a full settlement in its natural gas rate case, which are anticipated to result in significant revenue increases. Specifically, the electric settlement is expected to drive a $66.5 million revenue increase, while the natural gas settlement is projected to increase revenue by $18 million. These settlements are based on favorable return on equity figures and reductions in depreciation expenses, which enhance the financial outlook for NorthWestern Energy.
Additionally, the settlements have been viewed as more constructive than initially expected, with positive implications for base rates and cost recovery. Although the Yellowstone Country Generation Station (YCGS) proposals remain unsettled and will be addressed in a future hearing, the overall agreements with stakeholders such as the Montana Consumer Counsel and large customer groups indicate a promising path forward. These factors contribute to a positive assessment of NorthWestern Energy’s stock, supporting the Buy rating with a price objective of $63.00 USD.
In another report released on April 14, Wells Fargo also maintained a Buy rating on the stock with a $62.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NWE in relation to earlier this year.