Black Hills Corporation (BKH, Financial) is optimistic about achieving a 4% to 6% increase in long-term earnings per share (EPS), driven by steady growth in their core utility rate base and rising demand from data centers. The company anticipates accommodating 500 megawatts of data center power demand from current clients by the end of its five-year strategy. This innovative approach, which requires minimal capital investment, is expected to double earnings contributions to over 10% by 2028.
In addition to supporting data center expansion, BKH foresees sustained growth in its service areas, which will likely create new opportunities for investment in transmission and generation. These factors collectively bolster BKH's confidence in sustaining robust financial performance in the foreseeable future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Black Hills Corp (BKH, Financial) is $65.00 with a high estimate of $76.00 and a low estimate of $59.00. The average target implies an upside of 5.26% from the current price of $61.75. More detailed estimate data can be found on the Black Hills Corp (BKH) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Black Hills Corp's (BKH, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Black Hills Corp (BKH, Financial) in one year is $58.08, suggesting a downside of 5.94% from the current price of $61.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Black Hills Corp (BKH) Summary page.
