A Look at Avista’s Valuation After 2025 Clean Energy Plan Filing and Renewed Investor Interest

Simply Wall St

Avista’s recent filing of its 2025 Clean Energy Implementation Plan has received fresh attention from both regulators and investors. The company is targeting carbon-neutral electricity by 2030 and is expanding its clean energy delivery.

See our latest analysis for Avista.

Momentum has picked up for Avista lately, with the stock gaining 1.14% over the past week and delivering a year-to-date share price return of 2.17%. Alongside regulatory progress on clean energy and fresh institutional interest, the total shareholder return over the past year stands at 5.08%. The five-year figure sits at an impressive 36.32%, which suggests that steady performance and renewed optimism are beginning to build.

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But with Avista attracting fresh interest and the stock climbing recently, investors may wonder whether the company is now undervalued given its solid fundamentals, or if the market is already reflecting the full potential of its clean energy transition.

Most Popular Narrative: 9% Undervalued

With analysts estimating Avista's fair value at $41 per share, compared to the latest close at $37.14, valuations suggest there is further upside ahead. This perspective is based on in-depth analysis of Avista’s growth strategy and significant capital investment plans.

Robust, multi-year capital investment plans approaching $3 billion (2025 to 2029), with additional upside from grid expansion projects and new generation needs tied to large load requests, position Avista to earn regulated returns and drive long-term earnings expansion.

Read the complete narrative.

What huge financial leap is this valuation really banking on? The narrative is betting on a powerful future transformation, driven by key revenue and margin assumptions hidden beneath the surface. Want to know which bold projections are fueling that premium fair value? Unlock the full story to see exactly what needs to go right for Avista’s stock to reach its target.

Result: Fair Value of $41 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent regulatory risks or unexpected cost increases from grid expansion could undermine these upbeat forecasts and challenge the current undervaluation thesis.

Find out about the key risks to this Avista narrative.

Build Your Own Avista Narrative

If you see different potential in Avista or want to dive deeper into your own analysis, you can build a custom view in just a few minutes. Give it a try, and Do it your way

A great starting point for your Avista research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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