Monday, KeyBanc Capital upgraded IdaCorp, Inc. (IDA) shares to Buy from Hold with a price target of $33. The brokerage increased its 2009 EPS estimate to $2.60 from $2.40, and its 2010 estimate to $2.75 from $2.55.
Analyst Paul Ridzon noted that IDA's Idaho regulatory settlement acts to put a floor of 9.5% on the Company's earned ROE in the Idaho jurisdiction, where about 95% of regulated assets are held. Further, this ROE is calculated on the year-end equity balance, which the analyst views favorably during a period of elevated capital expenditure. The settlement offers earnings stability through 2011.
The analyst said that historically IDA has seen under-earnings and earnings volatility driven by regulatory lag and variability in hydro conditions. After updating estimates to incorporate IDA's Idaho regulatory settlement, the analyst upgraded his rating to Buy with a $33 price target.
Based upon the analyst's revised 2010 estimate, shares of IDA sell at an 8% discount to the group average P/E of 12.0x. The analyst believes shares warrant an average valuation given stability of earnings under the settlement and attractive investment opportunities. The analyst derived his price target of $33 by capitalizing his 2010 estimate of $2.75 at the group average P/E multiple of 12.0x.
Currently, IDA is up $0.95 or 3.11% and trading at $31.46.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.