Jefferies initiates Northwestern stock with buy rating on merger benefits

Jefferies has given Northwestern Corp. (NWE) a Buy rating and set a target price of $85.00, indicating a potential 12% increase from its current price of $75.75. The stock is near its 52-week high of $76. The company’s merger is expected to bring benefits such as increased cash flow, improved balance sheet capacity, and enhanced contracting skills.

This comes ahead of a $4.1 billion project slate where most of the spending is projected to occur after 2030. The merger is projected to reduce equity requirements by $890 million for the companies from 2027-2030. Northwestern has maintained a strong track record of dividend increases, having raised its dividend for 21 consecutive years, offering investors a 3.6% yield. The company is among 1,400+ US equities covered by Jefferies comprehensive Pro Research Reports.