As previously reported, Credit Suisse analyst Michael Weinstein downgraded Black Hills to Neutral from Outperform on valuation in a transition year. The analyst cited the period of modestly increased uncertainty ahead as Black Hills enters test years preparing for multiple rate case filings, and his perception of a more conservative earnings growth outlook since Linn Evans took the reins as CEO. Weinstein also notes possible turbulence in 2019 as the company transitions from a long period of balance sheet improvement to a new period of capital spending and growth that could temporarily pressure earnings in the shift. The analyst lowered his price target on the shares to $66 from $69.

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.