The Rapid City, SD-based integrated energy company operates with two business groups: utilities and non-regulated energy.
The upgrade comes "primarily in recognition of the upcoming acquisition of SourceGas which we view as transformative and supportive of BKH's utility-centric, de-risking strategy," the firm said in an analyst note.
The company is unfairly penalized for commodity exposure with the transformative growth aspects of the SourceGas transaction going unrecognized, the firm added.
Shares of Black Hills are declining by 0.22% to $46.14 in after-hours trading on heavy trading volume on Monday.
About 806,072 of the company's shares traded hands today, compared to its average volume of 645,025 shares per day.
Separately, TheStreet Ratings Team has a "hold" rating with a score of C+ on Black Hills.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BKH