Chesapeake Utilities initiated with a Buy at Ladenburg

Ladenburg initiated coverage of Chesapeake Utilities with a Buy rating and $100 price target. Chesapeake has taken “significant steps to increase its size and growth,” says the analyst, who projects compound annual growth in earnings in 2026 of 8.0% off a 2025 base in line with the company’s newly issued guidance of 8.0% growth from 2025 to 2028. However, the firm’s 2024 EPS estimate is below the company’s 8.5%-9% guidance range due to assumed costs associated with the purchase of Florida City Gas and the likelihood that most of the merger synergies will occur in later periods, the analyst tells investors.