JPMorgan has revised its price target for Spire (SR, Financial), adjusting it from $85 to $83, while still maintaining an Overweight rating for the stock. This adjustment follows the firm's recent updates to its models within the North American utilities sector. This move indicates the firm's continued confidence in the potential performance of Spire despite the minor reduction in the price target.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Spire Inc (SR, Financial) is $77.67 with a high estimate of $85.00 and a low estimate of $69.00. The average target implies an upside of 3.01% from the current price of $75.40. More detailed estimate data can be found on the Spire Inc (SR) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Spire Inc's (SR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" 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 Spire Inc (SR, Financial) in one year is $65.79, suggesting a downside of 12.75% from the current price of $75.4. 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 Spire Inc (SR) Summary page.
SR Key Business Developments
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Spire Inc (SR, Financial) reported an increase in adjusted earnings per share to $3.60 from $3.45 year-over-year, driven by strong growth in utility and midstream segments.
- The company is reaffirming its long-term EPS growth target of 5 to 7%, supported by a $7.4 billion capital investment plan over 10 years.
- Spire Inc (SR) successfully renewed a three-year labor agreement with the local 548 union, providing stability to its workforce.
- The Missouri Public Service Commission staff recommended a $19 million revenue increase in Spire's infrastructure system replacement surcharge request.
- Spire Inc (SR) increased its fiscal 2025 capital investment target by $50 million to $840 million, indicating a commitment to infrastructure improvement and growth.
Negative Points
- Spire Inc (SR) faced challenges with weather-related margin headwinds, leading to a $9 million reduction in expected margins for residential customers.
- The company's gas marketing segment experienced slightly lower results due to reduced market volatility.
- Higher corporate costs were reported, primarily due to increased borrowing balances.
- The proposed revenue increase in the Missouri rate case differs from Spire's request, with a lower return on equity and equity layer proposed by the PSC staff.
- Spire Inc (SR) is facing challenges with the weather mitigation mechanism in Missouri, which has been ineffective in aligning revenues with usage.
