Analyst Ross Fowler from Bank of America Securities maintained a Buy rating on Mdu Resources Group (MDU – Research Report) and increased the price target to $20.00 from $19.00.
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Ross Fowler has given his Buy rating due to a combination of factors including MDU Resources’ alignment with earnings expectations and its promising future guidance. MDU’s fourth-quarter adjusted EPS met the forecasts after considering the recent spin-off of its Construction Services business. Although the reported EPS for the fiscal year slightly missed the estimates, the adjusted EPS was as expected, reinforcing confidence in the company’s financial health.
Furthermore, the FY’25 EPS guidance provided by MDU is within a conservative range, yet it sets the stage for potential growth. The company’s capital expenditure plans and long-term growth expectations appear solid, with a focus on increasing its utility rate base and customer growth. The potential for securing additional data center contracts also presents a promising avenue for future earnings increases, justifying the Buy rating.