Evergy Issues $400 Million in Mortgage Bonds Amid Growth Strategy

Evergy has issued $400 million in 5.125% Mortgage Bonds due 2035, strengthening its financial position and supporting long-term growth. Analysts rate EVRG stock as a Buy with a $74.00 price target, and Spark's AI Analyst gives EVRG a positive outlook, citing strong operational performance and reasonable valuation.

Evergy (EVRG) has recently issued $400 million in 5.125% Mortgage Bonds due 2035, as part of its strategic move to strengthen its financial position and support long-term growth. The issuance was facilitated under an agreement with several major financial institutions and is aimed at bolstering Evergy's market standing and stakeholder interests [1].

The most recent analyst rating on EVRG stock is a Buy with a $74.00 price target. This positive outlook reflects the company's strong operational performance and positive technical indicators, as highlighted by Spark, TipRanks' AI Analyst. While financial performance shows stability, concerns about high leverage and negative free cash flow are noted. The company's valuation is considered reasonable, and the earnings call provided a positive outlook, supporting the stock’s potential for growth [1].

Evergy, Inc., through its subsidiaries Kansas City Power & Light Company and Westar Energy Inc., generates, transmits, distributes, and sells electricity. Its diverse energy mix includes coal, natural gas, oil, uranium, and renewable sources such as wind, solar, and landfill gas, serving residential, commercial, industrial, and municipal customers. Shares of the Kansas City, Missouri-based company have outperformed the broader market over the past 52 weeks, with EVRG stock returning 22.8% compared to the S&P 500 Index's 20.1% gain [2].

Despite reporting better-than-expected Q2 2025 adjusted EPS of $0.82, Evergy’s shares fell marginally on Aug. 7 due to a 17.2% drop in net income to $171.3 million. Weaker power demand from milder weather and a 6.38% decline in retail sales further pressured revenue, which slipped to $1.4 billion. For the fiscal year ending in December 2025, analysts expect EVRG's adjusted EPS to grow nearly 5% year-over-year to $4. The company's earnings surprise history is mixed, with it beating the consensus estimates in two of the last four quarters while missing on two other occasions [2].

The consensus rating among analysts covering the stock is a "Strong Buy," with 11 "Strong Buy" ratings and two "Holds." This configuration is slightly more bullish than three months ago, with 10 "Strong Buy" ratings on the stock. On Aug. 8, Mizuho analyst Anthony Crowdell raised Evergy’s price target to $77 and maintained an "Outperform" rating, citing strong large-load customer demand [2].

Evergy's Board of Directors declared a quarterly dividend of US$0.6675 per share, payable on September 19, 2025, to shareholders of record as of August 22, 2025. This reaffirmed dividend highlights the company's ongoing commitment to shareholder returns amid softer recent performance [3].

The recent dip in quarterly earnings is a short-term headwind, but the affirmed dividend and ongoing capital plans mean these results do not materially alter the most important catalyst, significant upcoming load growth from high-profile customers. The biggest risk remains the company’s need to raise external equity funding under potentially challenging market conditions [3].

Evergy's narrative projects $6.8 billion revenue and $1.2 billion earnings by 2028. This requires 5.0% yearly revenue growth and a $359.9 million earnings increase from $840.1 million currently. The company's forecasts yield a $75.60 fair value, a 3% upside to its current price [3].

References:
[1] https://www.tipranks.com/news/company-announcements/evergy-issues-400-million-in-mortgage-bonds
[2] https://finance.yahoo.com/news/wall-street-analysts-bullish-evergy-130538577.html
[3] https://simplywall.st/stocks/us/utilities/nasdaq-evrg/evergy/news/can-evergys-evrg-steady-dividend-offset-softer-earnings-in-i