Operating through its electric power subsidiary Idaho Power Co., the holding company is now trading at a premium to small cap peers, analysts said.
"We downgrade IDACORP on the heels of its sharp outperformance versus peers (+16.8% over the past month versus UTY +7.9%), which we believe takes relative valuation to a reasonable, though no longer compelling, level that fairly captures IDACORP's attractive service territory and potential incremental generation opportunities," analysts said.
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Additionally, third quarter earnings reported on October 30 were not supportive of meaningful estimate revisions (on an ongoing basis), analysts added.
IDACORP reported third quarter EPS of $1.73, which included approximately 22 cents per share of tax benefits Keybanc sees as non-recurring. Excluding items, the earnings results came in below Keybanc estimates of $1.56.
Separately, TheStreet Ratings team rates IDACORP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate IDACORP INC (IDA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, revenue growth and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."