Broker upgrades MDU Resources on Bakken East pipeline prospects
Freedom Broker raised its MDU Resources rating from Hold to Buy and set a $23 price target, compared with $21 previously. Analyst Matvey Tayts estimates the Bakken East project could lift earnings per share by 7% to 9% beginning in 2030 and add approximately $1.3 per share to valuation. MDU Resources has approved a final investment decision for the project and narrowed its expected cost range to $2.8 billion to $3.1 billion.
Why it matters
The broker's valuation case assigns approximately $1.3 per share of value to Bakken East and expects a 7% to 9% earnings-per-share benefit from 2030. The rating change and higher target provide a more favorable broker view of MDU Resources despite near-term earnings pressure.
Key facts
- 1MDU Resources approved a final investment decision for Bakken East. investing.com
- 2The company reduced the project's estimated cost range to $2.8 billion to $3.1 billion, from $2.7 billion to $3.2 billion. investing.com
- 3MDU Resources stock was reported up 2.0% in pre-market trading after the rating change. investing.com
- 4The revised target implies 18.3% upside from the Nov 11 close of $19.44. tradingview.com
Open questions
- Third-quarter revenue is reported as $347.7 million in one material and $347.8 million in another, with no basis difference stated.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.