JPMorgan analyst Richard Sunderland upgraded Spire Inc. SR from Neutral to Overweight and raised the price forecast from $72 to $85.
The analyst writes that Spire is well-positioned to increase earnings. It may also close its valuation gap amid Missouri’s (MO) regulatory environment improvement and SB4 legislation.
The analyst highlighted several other positive factors for the bullish stance, such as favorable winter weather reducing 2025 guidance risk.
Sunderland notes that the expected testimony in the MO rate case on April 23 could pave the way for a settlement.
The analyst expects settlement talks through the summer and notes a range of relatively undemanding outcomes, supporting upside potential for 2026 beyond Spire's 5%-7% growth rate.
The analyst writes that the combination of a final order and further regulatory lag reduction under a 2026 test year sets the stage for a multi-phase strategy to improve MO earned returns and unlock normalized growth from a higher earnings base.
The analyst now estimates 2026 EPS of $5.25 (vs. $4.96 prior), well above the implied guidance of $4.80-4.98.
Investors can gain exposure to the stock via Invesco High Yield Equity Dividend Achievers ETF PEY and ProShares S&P MidCap 400 Dividend Aristocrats ETF REGL.
Price Action: SR shares are up 0.51% at $77.30 at the last check Thursday.
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