Otter Tail's 15min chart exhibits bullish momentum with KDJ Golden Cross and Bullish Marubozu.

Otter Tail's 15-minute chart exhibited a notable trend reversal on August 28, 2025, at 13:00. The KDJ Golden Cross indicator, coupled with a Bullish Marubozu pattern, suggests a shift in the stock's momentum towards an upward trajectory. This indicates that the bulls are gaining control, and there is a high likelihood of further price appreciation. As the momentum continues to build, it is reasonable to anticipate sustained bullishness in the market.

Fitch Ratings has affirmed Otter Tail Corporation's (OTTR) and Otter Tail Power Company's (OTP) Long-Term Issuer Default Ratings (IDR) at 'BBB' and 'BBB+', respectively. The senior unsecured ratings for OTTR and OTP were also affirmed at 'BBB' and 'A-', respectively, with OTTR's and OTP's Short-Term IDRs at 'F2'. The Rating Outlook for the Long-Term IDRs is Stable [1].

Fitch's ratings reflect the predictable earnings and cash flows from regulated operations and strong results from OTTR's non-regulated, polyvinyl chloride (PVC) pipe plastics business. OTTR's ratings also reflect the higher operating risk profile and earnings volatility of its economically sensitive non-regulated business, which has improved in recent years. OTTR plans to retire its remaining $80 million of parent-only debt in 2026, after which no long-term parent debt will remain outstanding [1].

OTP's ratings reflect the relatively stable earnings and cash flows from its electric utility operations and expectations for balanced rate case outcomes, including its pending South Dakota rate case. Fitch projects average FFO leverage of 2.9x for OTTR and 4.2x for OTP over 2025-2029, supporting ratings [1].

OTTR's earnings remain driven by the plastics segment, which contributed 56% of consolidated 2024 EBITDA, up 2% from 2023. The PVC pipe business continues to perform well, with higher volumes from facilities expansion and improved product mix offsetting price declines and margin compression. OTTR's non-regulated businesses are supported by low parent-only debt [1].

OTTR faces potential financial exposure to an ongoing antitrust class action lawsuit at its PVC pipe plastics segment, which alleges illegal price-fixing. Fitch will monitor the progress of the case for any ratings impact [1].

OTP's regulatory environment is expected to remain supportive of credit quality, with balanced regulations in Minnesota and North Dakota, and a more challenging environment in South Dakota. Fitch expects OTP's regulatory environment to remain supportive of credit quality, with favorable outcomes in its recent general rate cases (GRCs) [1].

OTP is expanding its large load customer base, with a 155 MW thermal energy storage facility coming online this year and a 430 MW project pipeline under negotiation. OTP's territory attracts high-demand customers with low energy prices, cool climate, and increasing renewable generation [1].

Fitch expects OTTR to invest $1.6 billion in capital expenditures from 2025-2029, focusing on wind and solar generation and transmission projects. OTP is planning to invest in renewables to reach its goal of a 55% renewable resource mix by 2030 [1].

OTTR's credit profile is in line with those of its utility holding company peers, including MDU Resources Group, Inc. (BBB+/Stable), Xcel Energy Inc. (BBB+/Negative), and NorthWestern Energy Group, Inc. (BBB/Stable) [1].

References:
[1] https://www.marketscreener.com/news/fitch-affirms-otter-tail-corp-and-otter-tail-power-s-idrs-outlook-stable-ce7c50dadf8df626