MDU Resources ( NYSE: MDU ) -3.4% in Monday's trading after Bank of America downgraded shares to Underweight from Neutral with a $26 price target, trimmed from $30, citing "execution challenges" and a "stretched valuation."
Execution has been relatively poor in recent quarters, and BofA analyst Darius Lozny said he sees risk that MDU ( MDU ) fails to deliver at the low end of its 5%-8% long-term compound annual growth rate, and he expects "a challenging macro setup to weigh on shares in the near term."
Lozny sees pressures on MDU's ( MDU ) construction business from higher input costs impacting margins despite some relief from higher prices at Knife River, and drag from the company's non-qualified benefit plan which has been hurt by falling asset prices.
MDU Resources ( MDU ) offers "income and value in this crazy market," Gen Alpha writes in an analysis posted on Seeking Alpha .
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MDU Resources cut to Sell equivalent at BofA as risks mount