UPDATE: Credit Suisse Upgrades Spire (SR) to Outperform

(updating comment)

Credit Suisse analyst Michael Weinstein upgraded Spire (NYSE: SR) from Neutral to Outperform with a price target of $68.00.

The analyst comments "Upgrade to Outperform on valuation after underperformance likely driven more by broader investor fears of slower investment in the gas utility industry rather than anything specific to SR. These concerns originate from increasing emphasis on electrification of society from the environmental movement as part of a strategy to reduce greenhouse gas emissions and global warming. As such, we tend to view the underperformance of the gas distribution group as an inverse of renewable company outperformance within our coverage heading into the election. However, we see these concerns of possible slower gas distribution investment as premature, especially with a viable hydrogen economy likely 20 years away and the focus of most gas utility capex on safety and main replacement. We see SR as a compelling value here, especially given recent infrastructure legislation in Missouri that strengthens the company’s tracked investment program and rate stabilization and equalization (RSE) in AL and MS."

For an analyst ratings summary and ratings history on Spire click here. For more ratings news on Spire click here.

Shares of Spire closed at $58.26 yesterday.

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