BMO Capital raised its price objective on Black Hills Corp (NYSE:BKH) to $84.00 from $82.00 on Monday, while keeping an Outperform rating on the utility’s shares. The updated target implies upside relative to the stock’s then-current trading level of $71.56, although InvestingPro data indicates the shares may be trading above their Fair Value based on that service’s comprehensive assessment.
The price-target revision follows Black Hills’ fiscal year results, which showed earnings per share of $4.10 - a number that landed squarely at the midpoint of the company’s guidance range. Black Hills, which has a market capitalization of $5.4 billion, has delivered substantial shareholder returns over the last year, with a 27% rise in its share price over the past 12 months.
For 2026 the company provided guidance with a midpoint of $4.35 in EPS, a figure BMO Capital notes represents approximately 6% growth compared with 2025 results. The bank described this rate of growth as an "inflection" in Black Hills’ earnings trajectory. Management has also maintained a long-term EPS growth target of 4-6% through 2030, using the 2023 midpoint as the baseline for that projection.
In explaining its decision to lift the target, BMO Capital cited increased optimism around Black Hills’ microgrid management fee and the potential for additional earnings from data center-related activities. Those factors underpinned the firm’s more constructive view on the company’s near-term revenue mix and fee-generating opportunities.
Separately, Black Hills reported fourth-quarter 2025 results that fell short of analyst expectations. The company posted quarterly EPS of $1.41, missing the $1.45 consensus, and revenue of $635.5 million, below the $799.12 million that had been forecast. Despite the quarterly shortfall in both earnings and revenue, the company has maintained its broader growth outlook.
Investor sentiment showed a modest positive reaction in pre-market trading, as reflected in early stock movement following the reports and the analyst update. The combination of a reaffirmed growth trajectory, the analyst firm’s warmer view on emerging fee streams, and the recent operational results form the key data points driving market and analyst attention on Black Hills today.
Background context and implications
Black Hills’ fiscal-year EPS that matched the midpoint of guidance provides a baseline of execution relative to management expectations. The 2026 midpoint guidance implying roughly 6% growth signals a modest acceleration relative to the prior year and is characterized by BMO Capital as a potential turning point in earnings progression. At the same time, the fourth-quarter misses underscore short-term volatility in quarterly results.