Black Hills Trading 12% Below $82 Fair Value Ahead of NorthWestern Merger
Black Hills Corporation trades at a 12% discount to an $82 fair value estimate as it pursues a merger with NorthWestern Energy expected in 2026. The combined entity projects 6.3% annual adjusted EPS growth supported by a $4.7 billion capital expenditure plan.
Black Hills Corporation trades at a 12% discount to an $82 fair value estimate as the utility prepares to close its merger with NorthWestern Energy in 2026. The transaction is positioned to expand the combined company's asset footprint and drive growth through capital deployment.
The combined entity projects adjusted EPS growth of 6.3% annually, supported by a $4.7 billion capital expenditure plan. Management has cited secular demand drivers as a key tailwind for the post-merger growth profile, with the capex allocation aimed at expanding infrastructure and service capacity across the merged utility footprint.
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