Taking Stock of IDACORP (IDA) After Morgan Stanley’s Upgrade: What the New Growth Story Means for Valuation

Morgan Stanley’s upgrade of IDACORP (IDA) to a buy is centered on future demand, with expected power needs from a second Micron fab, increased mining activity, and potential data centers reshaping the company’s long term growth story.

See our latest analysis for IDACORP.

Even after a muted recent stretch for the share price, with short term moves roughly flat, IDACORP’s year to date share price return near 16 percent and five year total shareholder return above 50 percent suggest momentum is quietly building behind the upgraded growth story.

If this kind of infrastructure driven growth theme interests you, it is a good moment to widen the lens and explore fast growing stocks with high insider ownership.

Yet with the stock already up strongly, trading close to fresh highs and only a modest discount to analyst targets, investors now have to ask whether IDACORP still offers upside or whether future growth is fully priced in.

Most Popular Narrative Narrative: 10.4% Undervalued

Compared with IDACORP’s last close at $125.82, the most widely followed narrative points to a higher fair value anchored in steady, regulated growth.

Massive planned capital investments in transmission lines, energy storage, and generation assets, supported by a constructive regulatory environment and recent rate case filings, are set to expand IDACORP's rate base, enhancing regulated returns and long-term earnings growth.

Read the complete narrative.

Want to see the math behind that higher fair value? The narrative leans on accelerating revenue, rising margins, and a richer future earnings multiple. Curious which assumptions really move the needle? Dive in to unpack the full growth blueprint and how it all compounds into that valuation target.

Result: Fair Value of $140.50 (UNDERVALUED)

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

However, persistent hydro dependence and heavy capital needs leave earnings and returns vulnerable if weather patterns worsen or regulators resist timely cost recovery.

Find out about the key risks to this IDACORP narrative.

Another View: Market Signals Look Less Generous

Our valuation shows a different angle. On a price to earnings basis, IDACORP trades at 21.4 times, a touch above the US Electric Utilities average of 19.4 times and slightly above its own fair ratio of 21 times, hinting that optimism may already be priced in.

See what the numbers say about this price — find out in our valuation breakdown.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out IDACORP for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 912 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own IDACORP Narrative

If you see the numbers differently, or want to stress test your own assumptions, you can build a personalized IDACORP story in just a few minutes: Do it your way.

A great starting point for your IDACORP research is our analysis highlighting 2 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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