Jefferies initiates Black Hills stock with buy on Google project upside
Jefferies initiated coverage on Black Hills Corp (BKH) with a Buy rating and $87 price target, citing upside from a Google project. The stock is currently trading at $76.43. Analysts project 8.7% and 7.7% EPS CAGR for 2025-2030 and 2027-2032, respectively, above company guidance. BKH reported Q2 2026 adjusted earnings of $0.54 per share, beating estimates, but revenue missed forecasts. The company has a 3.64% dividend yield and a 55-year track record of dividend increases.
How this was made
The 30-second read
Why it matters
Analyst coverage upgrades and higher price targets reflect a fresh growth narrative for the utility.
Market read
New contract and analyst upgrades create a short‑term bullish catalyst for BKH.
What to watch
Potential regulatory or environmental hurdles for the Wyoming data‑center could delay benefits.
Background
Black Hills Corp, a diversified utility with a long dividend streak, announced a new Google data‑center project and posted Q2 2026 earnings that beat estimates.
Ticker impact
Jefferies and other analysts initiated coverage and raised price targets for Black Hills Corp after a new Google data‑center contract and better‑than‑expected Q2 earnings.
potential upward pressure as the market prices in higher earnings growth and upgraded targets
Multiple brokerages raised price targets and initiated buy ratings, indicating fresh positive catalyst.
Market effects
Utility and data‑center infrastructure sector may see increased investor interest.
Wyoming data‑center development could boost regional construction and tech activity.
Google's long‑term contract highlights demand for edge‑computing capacity.
Counterpoint
If the contract size is smaller than expected or execution risks materialize, the upgrades may be premature.
Key entities
- companyBlack Hills Corp
Utility company receiving a multi‑year Google data‑center contract.
- companyGoogle
Customer for the new data‑center facility.
