Evergy: Mizuho Raises PT to $74 from $70, Maintains Outperform Rating

Evergy: Mizuho Raises PT to $74 from $70, Maintains Outperform Rating

July 02, 2025 - Mizuho has raised its price target on Evergy Inc. (NASDAQ:EVRG) to $74.00 from $70.00, while maintaining an Outperform rating on the utility company's stock. The stock currently trades at $67.92, with a P/E ratio of 17.9x and has shown strong momentum, gaining over 28% in the past year.

The price target increase follows Evergy's Kansas Central unit reaching a balanced settlement in Kansas to raise annual revenue by $128 million, representing approximately 65% of its request. Kansas Central accounts for about 37% of Evergy’s rate base. According to InvestingPro, Evergy has maintained dividend payments for 34 consecutive years and raised them for 21 straight years, demonstrating strong financial stability.

Mizuho notes that while the settlement did not specify return on equity (ROE) and capital structure, the firm derives a 9.70% ROE and 50% equity ratio from other data points in the agreement. The firm believes this settlement demonstrates continued improvement in Kansas’ regulatory environment. InvestingPro analysis reveals 8 additional key insights about Evergy’s financial health and market position, available in the comprehensive Pro Research Report.

Evergy shares currently trade at approximately a 5% price-to-earnings discount to the electric utilities group, an improvement from the roughly 10% discount when Mizuho initiated coverage in the fourth quarter of 2024.

Mizuho suggests Evergy shares could reach a group average multiple if the company raises its earnings per share growth rate to 5-7% from its current 4-6% range, bringing it in line with mid-cap peers, with a potential update expected during Evergy’s fourth quarter 2025 earnings call in February 2026.

In other recent news, Evergy reported its Q1 2025 earnings, revealing adjusted earnings per share (EPS) of $0.54, which missed the forecasted $0.66. However, the company’s revenue exceeded expectations, reaching $1.37 billion against an anticipated $1.16 billion. UBS maintained its Buy rating on Evergy, with a price target of $78, following positive developments in a Kansas rate case. UBS noted that the Kansas Corporation Commission Staff recommended allocating half of the parent company’s attributable debt to the utility, impacting Evergy’s financial structure. Mizuho Securities also reiterated an Outperform rating for Evergy, with a price target of $70, citing favorable regulatory developments in Kansas. The Kansas Corporation Commission Staff’s testimony suggested a revenue requirement of around $114 million, lower than Evergy’s request, which Mizuho views positively. Both UBS and Mizuho analysts express confidence in Evergy’s growth prospects and regulatory environment.

References:
[1] https://www.investing.com/news/analyst-ratings/mizuho-raises-evergy-stock-price-target-to-74-on-kansas-settlement-93CH-4140469