Knife River: Wells Fargo Keeps Overweight Rating, Raises PT to $97

Knife River: Wells Fargo Keeps Overweight Rating, Raises PT to $97

Wells Fargo has maintained its "overweight" rating on Knife River (NYSE:KNF) while raising its price target to $97 from $96, according to a recent research report [1]. The update comes after Knife River reported its quarterly earnings on August 5, 2025, missing analysts' expectations.

The company reported earnings per share (EPS) of $0.89, falling short of the consensus estimate of $1.27 by $0.38. Revenue for the quarter reached $833.80 million, down from analyst expectations of $902.26 million. Despite the miss, Knife River's stock traded up 0.3% to $84.61 following the announcement.

Wells Fargo analysts noted that while the company's earnings were below expectations, the stock's valuation remains attractive. They highlighted Knife River's strong balance sheet and the potential for growth in its aggregate materials segment. The firm's return on equity (ROE) was 10.58% and net margin was 5.20%, indicating robust profitability.

The update from Wells Fargo is the latest in a series of analyst reports on Knife River. Royal Bank of Canada (RBC) and DA Davidson have also recently initiated coverage on the stock, with RBC setting an "outperform" rating and a $129.00 price target, and DA Davidson setting a "buy" rating and a $120.00 price target [2].

Institutional investors have shown significant interest in Knife River, with 80.11% of the stock owned by hedge funds and other institutional investors [3]. The company's market capitalization stands at $4.99 billion, with a debt-to-equity ratio of 0.92.

Knife River operates in the aggregates and construction materials sector, serving the United States through its Pacific, Northwest, Mountain, Central, and Energy Services segments. The company's ability to navigate the construction materials market and adapt to changing market conditions will be crucial in determining its future performance.

References:
[1] https://www.marketbeat.com/instant-alerts/knife-river-nyseknf-issues-quarterly-earnings-results-2025-08-05/
[2] https://www.marketbeat.com/instant-alerts/knife-river-corporation-nyseknf-given-consensus-recommendation-of-buy-by-brokerages-2025-08-05/
[3] https://www.cnbc.com/2025/08/11/nvidia-will-jump-20percent-after-report-of-china-export-license-agreement-wells-fargo-says.html