Mizuho Starts Evergy (EVRG) at Outperform

Mizuho analyst Anthony Crowdell initiates coverage on Evergy (NASDAQ: EVRG) with a Outperform rating and a price target of $67.00.

The analyst comments: "We are initiating on EVRG with an Outperform rating and a $67 PT. Shares of EVRG currently trade at a ~12% P/E discount to the group, and we believe shares can re-rate to a low-single-digit discount in the near-term and potentially an in-line multiple in the long term. Our thesis is predicated on 1) Evergy can find capital investment opportunities to grow rate base and earnings in line with peers, and 2) Kansas’ utility regulation continues to improve. In its current plan, EVRG is expected to grow rate base at a 6% CAGR through 2028, leading to EPS growth of 4%-6% through 2026 without the need for additional equity. We see potential upside capex opportunities (particularly in generation) in both KS and MO to support data centers and manufacturing that could lead to sustainably higher rate base and earnings growth through the end of the decade."

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

Shares of Evergy closed at $60.97 yesterday.

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