Ladenburg Thalmann analysts upgraded Evergy (NASDAQ:EVRG) to Buy from Neutral, raising the price target to $68.50 on the stock. The upgrade reflects optimism over increased rate base growth and strong demand projections, driven by rising investments in AI and data center infrastructure.
Since April 2024, Evergy’s customer demand growth forecast has improved to 2%-3%, up from 2%, while projected rate base growth has risen to 8%, compared to the previous estimate of 6%. This upward revision is fueled by recent announcements of significant capital expenditures, including two gas-fired combined-cycle gas turbine (CCGT) plants with a total capacity of 1,410 MW and 324 MW of new solar generation.
The company has also identified up to 6,000 MW of potential additional load, primarily stemming from increased demand tied to AI and data center development. These projects underscore Evergy’s strategic positioning to capitalize on the growing energy needs of advanced technologies.