RBC Capital analyst Shelby Tucker upgraded Black Hills to Outperform saying state commissions are likely to approve the pending SourceGas acquisition and the proposed Cost of Service Gas program. The analyst views the stock's current valuation as "very attractive" and raised his price target for the shares to $55 from $52.

Scotiabank analyst Andrew Weisel lowered the firm's price target on Black Hills to $54 from $58 and keeps a Sector Perform rating on the shares. Interest rates remain stubbornly high, which has weighed on the sector's valuation, the analyst tells investors. The firm views both Canadian and North American utility stocks as undervalued but sees upside for Canadian utility stocks following their steady underperformance compared to its U.S. peers. Fundamentally, Scotiabank remains bullish on the group's long-term earnings outlook given the tailwinds driving its strong rate base growth.