Analyst Julien Dumoulin Smith of Jefferies reiterated a Buy rating on TXNM Energy (TXNM – Research Report), boosting the price target to $58.00.
Julien Dumoulin Smith has given his Buy rating due to a combination of factors that highlight TXNM Energy’s promising growth trajectory. The company has demonstrated a strong financial performance with a solid finish to FY24 and an optimistic outlook for future earnings per share (EPS) growth. The projected EPS compound annual growth rate (CAGR) is expected to rise to 8.7%, driven by a 12% rate base growth and robust returns.
Additionally, TXNM Energy’s growth is supported by significant transmission and capacity additions in Texas and New Mexico, respectively. The company is also exploring potential mergers and acquisitions, which could further enhance its growth prospects. Regulatory successes and upcoming rate case settlements are expected to contribute positively to the company’s financial health, with a price target increase to $58 reflecting these favorable conditions.
According to TipRanks, Dumoulin Smith is a 4-star analyst with an average return of 2.6% and a 53.53% success rate. Dumoulin Smith covers the Utilities sector, focusing on stocks such as Hawaiian Electric, Ameren, and Nisource.
In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $57.00 price target.