Update shared on 27 Oct 2025
Fair value Increased 3.08%Analysts have increased their price target for Chesapeake Utilities from $120 to $128, citing updated sector targets and the company’s recent earnings outlook as key factors in the revision.
Analyst Commentary
Bullish Takeaways
- Bullish analysts have raised their price targets, reflecting confidence in Chesapeake Utilities’ recent earnings outlook and improved sector sentiment.
- Adjustments within the broader utilities sector highlight the company’s strong execution and steady financial performance.
- Continued maintenance of an Equal Weight rating suggests stability and a balanced risk profile, supporting an outlook of consistent returns for investors.
- Growth prospects remain favorable, driven by operational improvements and sector-wide optimism ahead of the next earnings period.
Bearish Takeaways
- While the price target has increased, retaining an Equal Weight rating signals a degree of caution regarding the company’s relative upside potential.
- Bullish adjustments are influenced by sector trends rather than company-specific catalysts. This tempers expectations for outperformance versus peers.
- Analysts remain attentive to potential headwinds in the utilities sector that could impact Chesapeake Utilities’ valuation and growth trajectory.
What's in the News
- Chesapeake Utilities Corporation reaffirmed its 2025 earnings per share guidance at $6.15 to $6.35 and its 2028 EPS guidance at $7.75 to $8.00, including updates related to the pending FCG excess depreciation filing (Key Developments).
- The company entered into a note purchase agreement for a $200 million private placement of unsecured senior notes, with tranches maturing in 2028, 2030, and 2031 (Key Developments).
- Chesapeake Utilities received $150 million from its first tranche of the private placement and expects to receive the remaining $50 million upon closing in September 2025 (Key Developments).
Valuation Changes
- Fair Value has risen slightly from $136.20 to $140.40, indicating a modest upward adjustment in the estimated intrinsic value.
- Discount Rate remains unchanged at 6.78%, which reflects consistent risk assumptions in valuation modeling.
- Revenue Growth has fallen from 4.11% to 3.69%, signaling a more cautious outlook for top-line expansion.
- Net Profit Margin has edged down from 19.34% to 19.07%, suggesting a marginal decrease in projected profitability.
- Future P/E ratio has increased from 21.92x to 23.18x, which points to a higher multiple being assigned to forward earnings expectations.
Disclaimer
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