MDU Resources Group: Strategic Positioning and Growth Prospects Drive Buy Rating
MDU Resources Group has received a Buy rating from Ross Fowler due to its strategic positioning as a regulated utility post-spin-offs. The company is expected to achieve 7-8% rate base growth and 6-8% EPS growth through 2029, driven by projects like Badger Wind, JETx, and Bakken East. Jefferies also upgraded the stock to a Buy with a $20.00 price target, highlighting MDU's strong investment potential and ability to navigate regulatory complexities across multiple jurisdictions.
Ross Fowler’s rating is based on MDU Resources Group’s strategic positioning as a pure-play regulated utility following recent spin-offs. The company is leveraging its integrated platform, which includes low-cost Bakken gas supply, storage, pipelines, and transmission, to meet diverse demands from industrial to retail sectors. This strategic focus is expected to drive a 7-8% rate base growth and a 6-8% EPS growth through 2029, supporting the Buy rating.
Additionally, MDU’s growth prospects are bolstered by three key projects: Badger Wind, JETx, and Bakken East. These projects are anticipated to provide significant EPS upside, with Badger Wind enhancing generation capacity, JETx expanding transmission infrastructure, and Bakken East increasing takeaway capacity. MDU’s ability to manage regulatory complexities across eight jurisdictions further strengthens its position, making it a compelling investment opportunity.
In another report released on September 19, Jefferies also upgraded the stock to a Buy with a $20.00 price target.
