Mizuho Says Evergy’s (EVRG) Regulatory Gains are Already Priced in

Evergy, Inc. (NASDAQ:EVRG) is included among the Best Stocks for a Dividend Achievers List.

On December 18, Mizuho analyst Anthony Crowdell cut Evergy, Inc. (NASDAQ:EVRG) to Neutral from Outperform and lowered the price target to $76 from $86. In a research note, he said the stock already reflects the company’s improved regulatory setup in Kansas and Missouri. Mizuho’s model assumes about 7% earnings growth, while management is guiding for 4% to 6%. The firm sees little room for upside from here, since any improvement in the outlook appears to be priced in.

The market has rewarded the stock. Shares are up more than 17.5% so far this year. That gain stands out, especially given the weather challenges earlier in the year. In the second and third quarters, demand was pressured by what CEO David Campbell described as “cooler than normal summer weather.”

Kansas and Missouri both offer tax incentives designed to attract data centers. That matters a lot as power-hungry tech customers are looking for reliable utilities, and Evergy, Inc. (NASDAQ:EVRG) has been showing up in those conversations. For a company of its size, its backlog of large power customers is among the biggest in the US. In addition to projected earnings growth, the company also sees results trending toward the high end of that range in the second half of the decade. For a regulated utility, that’s respectable growth.

Evergy, Inc. (NASDAQ:EVRG) is headquartered in Kansas City, Missouri. It runs electric utilities across Kansas and Missouri and serves about 1.7 million residential, commercial, and industrial customers.

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