BofA Securities Upgrades Spire (SR) to Neutral

BofA Securities analyst Ross Fowler upgraded Spire (NYSE: SR) from Underperform to Neutral with a price target of $89.00 (from $76.00).

The analyst comments "We are upgrading Spire to Neutral from Underperform as the risk/reward profile has normalized, in our view. We believe Spire is entering a rebasing phase for earnings driven by a more constructive regulatory environment in Missouri (following the passage of SB6) and the anticipated closing of the Tennessee gas LDC acquisition. Our $89 PO is up from $76 and is based on a sum-of-the-parts analysis. Our PO indicates 1% price upside and ~4% total shareholder potential return. Consistently across our coverage universe we apply the peer gas 2027E P/E multiple of 17.4x up from 16.0x prior. Overall, shares are modestly inexpensive relative to peers (5% discount) and reasonable given improving fundamentals. We expect SR to perform in line with peers as execution risk moderates."

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 $88.11 yesterday.

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