Mizuho maintained its Neutral stance on shares of IDACORP, Inc. (NYSE:IDA), with a consistent price target of $102. The firm's position comes after investor meetings held in Chicago with IDA's Chief Financial Officer, Brian Buckham. The discussions centered on several key topics, including the anticipated request for proposals (RFP) process for 2026/2027, which is expected to be concluded soon. Additional focal points were the updated capital and forward financing plans, slated for release during the third quarter 2024 earnings call.
The company is witnessing strong growth in its customer base and overall energy demand within its service area. Management is confident that this trend will support further capital expenditure (capex) in the future. Mizuho anticipates that the forthcoming updates will likely show increased growth in energy demand and rate base compound annual growth rates (CAGRs) as the new capex and additional load are factored into the revised plan.
Despite the positive aspects highlighted from the meetings, Mizuho's reiterated rating reflects a view that the current stock price already accounts for these positive developments. IDACORP's stock is trading at approximately a 5% price-to-earnings (P/E) premium, indicating that the market has already priced in the anticipated growth. Investors are still looking for more details to emerge from IDACORP's strategic updates to gain clearer insight into the company's trajectory.
The upcoming third quarter 2024 earnings call is expected to be a significant event for IDACORP, as it will provide investors with the updated capital and financing strategies. These disclosures are eagerly awaited for their potential to influence the company's financial planning and investment prospects.
In summary, while recognizing the robust growth and potential for capex expansion, Mizuho's reiteration of a Neutral rating and a $102 price target on IDACORP suggests a cautious approach, as the market seeks further clarity and confirmation of the company's growth trajectory and financial planning.
In other recent news, IDACORP, an Idaho-based utility company, reported a significant increase in diluted earnings per share to $1.71, up from $1.35 in the same quarter of the previous year. This strong performance led to a substantial rise in the company's net income by almost $21 million, primarily driven by customer growth and higher usage. As a result, IDACORP has raised the lower end of its full-year earnings guidance to a range of $5.30 to $5.45 per diluted share.
BofA Securities has initiated coverage on IDACORP, assigning a Neutral rating and establishing a price target of $110.00. The firm's analysis suggests that IDACORP's stock is currently trading at a value that reflects the company's fundamentals accurately. BofA Securities forecasts IDACORP's earnings per share (EPS) for the fiscal years 2024, 2025, and 2026 to be $5.41, $5.76, and $6.04, respectively.
In other developments, IDACORP is investing in a 200-megawatt battery storage system and is in negotiations for additional resources for 2026. Despite increased operating expenses due to factors such as pension-related costs and wildfire mitigation, the company has managed to maintain strong system reliability. Analysts have noted that IDACORP has been proactive in managing its financing needs, with a $300 million ATM program in place.
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