Key insights
- Mizuho raised its price target on Spire (SR) to $105 following the sale of its gas marketing business, anticipating a higher valuation due to its now fully regulated gas utility profile. The sale is expected to fund the Spire Tennessee acquisition. However, Spire reduced its 2027 EPS guidance. Overall, the news is slightly bullish, suggesting positive sentiment and potential upside for Spire, but tempered by reduced earnings expectations.
Investing.com - Mizuho raised its price target on Spire stock (NYSE:SR) to $105 from $96 while maintaining an Outperform rating following the company’s recent asset sale. The stock currently trades at $94.38, near its 52-week high of $95.31, reflecting strong momentum with a 31% gain over the past year.
On March 30, Spire announced the sale of its gas marketing business to Boardwalk Pipelines, a unit of Loews, for $215 million. The transaction represents an 8.3x multiple on 2025 marketing net economic earnings.
The sale creates a fully regulated gas utility profile for Spire and removes a volatile business segment from its portfolio. According to InvestingPro data, the company has raised its dividend for 22 consecutive years, underscoring its commitment to shareholder returns with a current yield of 3.5%. The transaction is expected to help fund the recently closed Spire Tennessee acquisition.
Spire reduced its 2027 earnings per share guidance to a range of $5.40 to $5.60, down $0.25 per share from prior guidance to reflect the marketing business sale. Management plans to provide updated fiscal 2026 guidance on its upcoming second-quarter earnings call.
Mizuho revised its 2026 through 2029 estimates for Spire, stating that the fully regulated profile merits a higher valuation. InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value, with 10 additional ProTips available to help investors make informed decisions about this utility transition.
In other recent news, Spire Inc. announced the sale of its gas marketing business, Spire Marketing Inc., to Boardwalk Pipelines, LP for $215 million. This transaction is expected to close in the third fiscal quarter of 2026, pending regulatory approvals and standard closing conditions. Proceeds from the sale will help fund Spire’s acquisition of the Piedmont Natural Gas Tennessee business and support general corporate purposes. UBS has reiterated its Buy rating on Spire, maintaining a price target of $106 following the announcement. Similarly, BTIG has also maintained a Buy rating and a $105 price target for the company. Ladenburg Thalmann increased its price target to $100 from $92 while keeping a Buy rating. The sale of the gas marketing unit was not anticipated by investors, who were focused on a potential storage sale for the Piedmont acquisition. The transaction represents approximately 10.2 times Spire’s fiscal year 2026 earnings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.