Ladenburg Thalmann reiterates Black Hills stock Buy on data center deal
Ladenburg Thalmann reiterated a Buy rating and $90.50 price target on Black Hills Corp (BKH), citing a data center deal with Google. The stock has potential 17% upside from its current $77.53. The deal reduces equity needs by $576M and projects $0.79 accretion in 2030. Other analysts also raised price targets, with BofA at $97 and BMO at $86, citing growth potential.
How this was made
The 30-second read
Why it matters
Analyst upgrades reflect expectations of $150 M incremental net income and higher earnings per share, driving a bullish outlook.
Market read
Analyst upgrades suggest short‑term upside for BKH, but the core catalyst (Google contract) was announced earlier, making the news a secondary follow‑up.
What to watch
Potential regulatory or environmental hurdles for the 564‑MW generation investment.
Background
Black Hills Corp (BKH) is a US electric and natural‑gas utility that recently secured a long‑term data‑center agreement with Google in Cheyenne, Wyoming.
Ticker impact
Analyst upgrades and higher price targets following Black Hills' data center contract with Google.
likely upward pressure as investors price in higher earnings forecasts.
Multiple brokerages raised targets and upgraded to Buy, indicating belief in earnings uplift from the Google project.
Market effects
Utility sector may see modest uplift as data‑center partnerships gain attention.
Wyoming energy market could benefit from increased demand.
Limited; primarily a US utility story.
Counterpoint
The upgrades may be premature if the Google project faces construction delays or lower-than-expected utilization.
Key entities
- companyBlack Hills Corp
Utility company receiving the Google data‑center contract.
- companyGoogle
Partner in the data‑center project.
