Spire initiated with a Neutral at Janney Montgomery Scott

Janney Montgomery Scott initiated coverage of Spire (SR) with a Neutral rating and $73 fair value estimate. Spire mainly provides natural gas distribution to customers in Missouri, Alabama, and Mississippi, which are states that the firm considers “relatively constructive from a regulatory point of view,” but it still experiences negative impacts from unfavorable weather and rising costs and the firm believes that leverage is “higher than optimal at a time when future cash outflows remain important,” the analyst tells investors.