UPDATE: JPMorgan Downgrades Spire (SR) to Neutral

JPMorgan analyst Richard Sunderland downgraded Spire (NYSE: SR) from Overweight to Neutral with a price target of $70.00 (from $76.00).

The analyst comments "We see SR’s MO rate case outcome as disappointing, diverging from initial expectations for a smooth rate case process, reversing MO’s improving regulatory backdrop, and ultimately reducing earnings power versus more balanced results. MO regulation remains inconsistent at best, with markedly different rate case outcomes across utilities over the past several years, and Spire’s latest order amplifies untenable regulatory instability, in our view. Given SR’s undetermined path forward in addressing case challenges and the STL Pipeline’s uncertainty at FERC, we do not expect the rate order to serve as a clearing event, and we anticipate SR’s current -9% discount on 2023 earnings to persist absent full clarity across consolidated earnings power. As a result, we downgrade SR to Neutral."

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 $63.61 yesterday.

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