Mizuho Securities analyst Anthony Crowdell has reiterated their neutral stance on TXNM stock, giving a Hold rating on February 24.
Anthony Crowdell has given his Hold rating due to a combination of factors influencing TXNM Energy’s current market position. Despite the company’s impressive update on its five-year capital expenditure plan, which saw an increase of over 25% and an elevated EPS CAGR to 7-9%, the stock’s recent performance has already outpaced the UTY by approximately 8%. This has resulted in TXNM trading at a modest 1% P/E discount to its peers, which is considered a fair valuation.
Additionally, TXNM’s equity needs have risen significantly to $1.3 billion for the 2025-29 period to support its ambitious $7.8 billion capex plan. While there are potential upside opportunities in transmission and generation projects in Texas and New Mexico, these are contingent on future approvals and regulatory clarity. The upcoming rate case settlements and filings also introduce elements of uncertainty. As a result, Crowdell maintains a Hold rating, reflecting a balanced view of the company’s growth prospects and current valuation.
In another report released on February 24, Scotiabank also maintained a Hold rating on the stock with a $55.00 price target.