Evergy initiated with a Neutral at Ladenburg

Ladenburg initiated coverage of Evergy with a Neutral rating and $51 price target. Evergy currently trades at a 9.8% price-to-earnings discount reflecting its recently modified lower targeted earnings growth ratio and leverage metrics near the rating agencies downgrade threshold, the analyst tells investors in a research note. The firm forecasts compound annual growth in earnings of 5% through 2027, driven by 6% rate base growth and accelerating demand growth.