2024-02-25 07:30:00 ET
Summary
- As is the case with every business, demographics are very important.
- IDACORP operates in a service area with a steadily growing economy.
- The electric utility's debt is rated BBB by S&P on a stable outlook.
- IDA could be 17% undervalued from the current share price.
- The electric utility could be positioned to deliver appealing total returns over the next 10 years.
As an investor, I have learned over the years to never underestimate the impact that demographics can have on a company's fundamentals. This is especially true within the utility sector. Why do I believe this to be so?
Utilities operate with a virtual monopoly within the service areas they occupy. If these service areas are economically thriving, businesses and more people tend to move to them. This will naturally grow the customer base that a utility can serve over time....
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For further details see:
Idacorp: An Underfollowed Utility Worth Buying Now