Black Hills Corp (NYSE:BKH): The Power In Energy

by Paul Wilson | Wednesday, Mar 19, 2014 | 821 views

Boston, MA, 03/19/2014 – Energy drives things, you know that already. But can that energy drive Black Hills Corp (NYSE:BKH)? The company provides utility energy, and it is good to note BKH is good at its game. The company is known for reliable energy stream even in the most demanding conditions. It takes credit for having maintained unchallenged power supply to its customers through the winter weather.

The truth is that the energy sector is generally exciting at the moment. But are there specific strengths that would make you want a piece of this energy behemoth? You can see shares going up and establishing new record prices, and then you wonder what tomorrow holds for the stock.

There are interesting things in Black Hills Corp (NYSE:BKH) which make the stock attractive. The company boasts one of the best distribution systems where customers are treated to very reliable energy supply. This means that it keeps enrolling more customers to its business network due to reliability.

The company has some of the stable rates because of the fact that it owns its energy generating businesses. With stable rates, customers keep coming and revenue keeps growing. Then, the exciting thing in the whole mix is that the company enjoys attractive margins which means that it stable rates are not a deterrent to profit growth.

Management in action

To stand out as a reputable utility company, the management at Black Hills Corp (NYSE:BKH) knows how to play its part really well. The company has reasonable debt levels, compelling earnings growth and solid stock price performance because the management know where to touch and where not to. It is interesting that the company is able to achieve expansion and revenue growth without costs and expenses becoming overwhelming.

Analysts fan the excitement

It cannot be said that Black Hills Corp (NYSE:BKH) is experiencing uptrend on the back of positive analyst recommendation. But it is right to say that with the strength in the stock becoming increasingly clear, analysts are revising their views accordingly. The stock currently has consensus hold rating and average price target of $50.04.

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