Update shared on20 Sep 2025
Fair value Increased 2.56%Analysts have raised MDU Resources Group’s price target to $20.00, citing improving visibility of pipeline project upside, attractive core business valuation, and differentiated 6–8% expected earnings growth.
Analyst Commentary
- Bullish analysts cite compelling value in MDU’s core business at current share levels.
- Upside potential from the Bakken East Pipeline is recognized, with a $1 per share incremental value at a 50% probability.
- Pipeline project upside is becoming more visible and likely to be realized.
- MDU is expected to deliver 6%-8% annual earnings growth, seen as differentiated compared to other exploration and production peers.
- The upgraded price target reflects improved earnings and pipeline prospects.
What's in the News
- Board approved a 7.7% increase to the quarterly dividend, raising it to 14 cents per share and targeting a 60%-70% payout ratio.
- Filed a $400 million at-the-market follow-on equity offering for common stock.
- Narrowed 2025 earnings guidance to $0.88–$0.95 per share, citing midyear performance and weather impacts; assumes no equity issuances in 2025 and continued 1–2% utility customer growth.
- Added to the Russell 1000 Dynamic Index.
Valuation Changes
Summary of Valuation Changes for MDU Resources Group
- The Consensus Analyst Price Target has risen slightly from $19.50 to $20.00.
- The Consensus Revenue Growth forecasts for MDU Resources Group has significantly risen from 3.0% per annum to 4.2% per annum.
- The Future P/E for MDU Resources Group has fallen slightly from 20.91x to 20.19x.
Disclaimer
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