BKH price target raised for AI infrastructure angle

What happened: On April 15, BMO Capital raised its price target for Black Hills Corporation (BKH) to $91 from $84, citing the utility's growing potential in AI infrastructure. This follows a series of analyst upgrades, with BofA raising its target to $76 on April 9. Black Hills reported Q1 earnings on March 28, with adjusted EPS at $1.79, down from $1.87 YoY due to a warm winter, but management reaffirmed full-year 2026 guidance of $4.25-$4.45.

Market impact: The upgrades and positive earnings guidance have driven BKH's stock price up, benefiting investors seeking high-yield dividend growth stocks. The AI infrastructure angle has attracted attention, potentially drawing more investment into utility stocks with similar growth prospects.

What to watch next: Black Hills' next earnings release on August 1, 2023, will provide an update on its growth trajectory. Additionally, any announcements regarding new AI infrastructure projects or partnerships could further drive BKH's stock price.