Jefferies Raises Price Target for MDU Resources Group to $20, Upgrades to "Buy"

Jefferies upgraded MDU Resources Group from 'Hold' to 'Buy', raising its price target from $18 to $20. The investment firm cited the company's attractive valuation, growth potential, and healthy dividend yield of 3.48%. Jefferies also highlighted the company's consistent earnings growth of 6-8% annually and a clear path for its regulated energy delivery operations.

Jefferies Financial Group has upgraded MDU Resources Group, Inc. (MDU) from 'Hold' to 'Buy', raising its price target from $18 to $20. The investment firm cited several factors in its decision, including MDU's attractive valuation, strong growth potential, and a healthy dividend yield of 3.48% Mdu Resources Stock Price, News & Analysis^[1].

The upgrade comes amidst a series of strategic moves and positive developments for MDU. The company recently received regulatory approval for its planned acquisition of a 49% ownership stake in the Badger Wind Farm, valued at approximately $294 million . This investment, which is expected to be completed by the end of 2025, supports MDU's commitment to providing cost-effective energy to its 1.2 million customers across the Pacific Northwest and Midwest.

Additionally, MDU has announced two strategic appointments to its board of directors, effective August 12, 2025. Charles M. Kelley, a former ONEOK senior VP of Natural Gas Pipelines, and Tammy J. Miller, former North Dakota lieutenant governor and Border States CEO, bring extensive industry experience to the Audit Committee . These appointments are expected to enhance the company's regulatory strategy and corporate governance.

Jefferies also highlighted MDU's consistent earnings growth of 6-8% annually and a clear path for its regulated energy delivery operations. The company reported strong Q1 2025 results, with notable growth in its pipeline and natural gas distribution segments . Despite facing challenges from increased operational expenses and weather impacts, MDU continues to advance multiple regulatory proceedings and execute growth projects.