Spire (SR) Stock Forecast & Price Target

Spire Inc. exhibits a robust growth outlook driven by its strategic capital plan, projecting a 7-8% increase in the Missouri rate base and annual long-term earnings per share (EPS) growth of 5-7%. The Gas Marketing and Midstream segments promise additional revenue opportunities, particularly from enhanced transportation and storage fees, along with a favorable earnings trajectory anticipated to reach a 30% net income increase by FY26. Furthermore, ongoing investments in the utility infrastructure, primarily covered under the Infrastructure System Replacement Surcharge (ISRS), minimize regulatory lag and position Spire favorably against its peers in the industry.

Spire Inc. has revised its earnings per share (EPS) estimates downward for 2025, now projected at $4.49, highlighting concerns about earnings instability and a weakened balance sheet, which has resulted in a discounted valuation compared to local distribution company (LDC) peers. The company faces significant risks, including unfavorable regulatory developments and operational challenges, that could impede its ability to achieve the targeted 5-7% growth in adjusted EPS, as well as rising interest rates impacting its financial flexibility. Additionally, specific vulnerabilities such as warmer winters, changes in the regulatory landscape, and potential operational disruptions from the STL Pipeline shutdown further contribute to a negative outlook for Spire's stock.