KeyBanc Starts Black Hills Corp (BKH) at Hold

KeyBanc initiated coverage on Black Hills Corp (NYSE: BKH) with a Hold rating.

Analyst Matt Tucker said, "If BKH’s upcoming drilling results show that the economics and resource potential live up to management’s expectations, it could present material upside to BKH’s current valuation, which we think appropriately reflects limited value for these unproved assets. If the results disappoint, we think that could negatively impact investor sentiment and likely BKH's shares."

"We therefore view BKH as presenting a high risk/high reward scenario relative to ts diversified utility peers, and think current valuation reflects an appropriate balance, as our SOTP valuation analysis yields a fair value of approximately $52.50, roughly in line with BKH’s current share price. We primarily look for better visibility on the value of these O&G assets, or a more attractive entry point, in order to consider becoming more constructive on BKH," he said.

For an analyst ratings summary and ratings history on Black Hills Corp click here. For more ratings news on Black Hills Corp click here.

Shares of Black Hills Corp closed at $50.81 yesterday.

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