IDA: Sector Tailwinds And Capex Discipline Will Drive Future Upside

Analysts have nudged their consolidated price target for IDACORP slightly higher to approximately $141, citing modestly stronger long term revenue growth expectations, a slightly improved profit margin outlook, and a supportive utilities backdrop highlighted by recent target increases from several firms despite one minor downward revision.

Analyst Commentary

Street research on IDACORP has tilted more constructive overall, with multiple firms lifting price targets and reiterating positive ratings, while a smaller cohort remains more measured on valuation and regulatory execution risks.

Bullish Takeaways

• Bullish analysts point to a favorable utilities backdrop, arguing that the sector remains materially undervalued relative to fundamentals as structural tailwinds support earnings and cash flow visibility.
• Recent target hikes into the mid $140s and even mid $150s reflect rising confidence that capital spending plans and rate base growth can translate into higher long term earnings power, supporting a premium valuation versus historical averages.
• The positive Q3 update cycle for utilities, characterized by higher capex paired with an improving cost of capital, is seen as reinforcing IDACORP's ability to deliver steady growth while maintaining balance sheet discipline.
• Even neutral ratings paired with fresh initiations are framed by some as a constructive signal that IDACORP is well positioned within the broader power and utilities coverage universe, benefiting from secular demand and grid investment themes.

Bearish Takeaways

• Bearish analysts caution that after the recent run up, current trading levels already discount a sizable portion of the long term growth story, limiting near term upside despite incremental target increases.
• Equal Weight stances underscore concern that execution on elevated capex plans and regulatory outcomes must be near flawless to justify higher multiples, leaving less room for error if costs or approvals disappoint.
• Some remain wary that while sector tailwinds are strong, IDACORP may not offer the same earnings acceleration or valuation disconnect as higher conviction peers, which tempers enthusiasm for more aggressive ratings.
• Modest target reductions at the margin highlight lingering sensitivity to changes in interest rate expectations and sector wide rerating risk, particularly for names already trading near updated fair value estimates.

What's in the News

• Raised full year 2025 earnings guidance to a range of $5.80 to $5.90 per diluted share, up from the prior $5.70 to $5.85 outlook. This signals increased confidence in near term profitability (Key Developments).
• Board declared a common stock dividend of $0.88 per share, payable December 1, 2025, to shareholders of record as of November 5, 2025. This reinforces IDACORP's commitment to returning capital to investors (Key Developments).

Valuation Changes

• Fair Value: nudged higher from $140.88 to $141.00, reflecting a very modest upward adjustment in intrinsic value estimates.
• Discount Rate: edged down slightly from 6.96% to 6.96%, indicating a marginally more favorable cost of capital assumption.
• Revenue Growth: increased from approximately 9.76% to 10.02%, signaling a small upgrade to long term top line growth expectations.
• Net Profit Margin: improved fractionally from about 18.85% to 18.86%, suggesting a minor enhancement to projected profitability.
• Future P/E: eased from roughly 20.68x to 20.53x, pointing to a slightly lower valuation multiple embedded in forward estimates.