Avista (AVA) Stock: Why It Increased 2.7%

By Amit Chowdhry ● Sep 23, 2022
  • The stock price of Avista (AVA) increased by 2.7% in the most recent trading session. This is why.

The stock price of Avista (AVA) increased by 2.7% in the most recent trading session. 

Why: Bullish research report

Price target: $44

Rating: Upgraded from “Neutral” to “Buy”

Analyst: Mizuho Securities analyst Anthony Crowdell

Crowdell adjusted the rating while noting that the shares are currently trading at about a 14% P/E discount to the broader electric utility group and about an 8% discount to the small-cap electric utility group. 

“We believe shares should trade in line with the small-cap electric companies given the resolution of regulatory overhang and wildfire risks. Our SOTP $44 PT (unchanged) implies a 13.4% total return. The company was able to achieve a settlement with most of the intervenor parties in its WA rate case, which should allow the company to earn its allowed return less a 70-bps structural lag. Further, we believe AVA should not be subject to outsized wildfire liability,” wrote Crowdell in a research note.