MDU Resources downgraded to Neutral at BofA after 53% year-to-date advance

As previously reported, BofA downgraded MDU Resources (MDU) to Neutral from Buy with a price target of $31, up from $30. At the company’s investor day ahead of the October 31 spin transaction, the Construction Services subsidiary Everus’ pro forma guidance met the firm’s expectations, notes the analyst, who says that clarity provided at the investor day event represented “the last significant catalyst prior to the spin transaction itself.” While both MDU and Everus are well-managed, and guidance for both companies post-spin appears “sound, competitive, and achievable,” the firm says its sum-of-the-parts analysis, which reflects newly issued guidance for Everus, indicates that these positive qualities are largely reflected in the current price with MDU shares up 53% year-to-date.