Spire (SR) Stock Forecast & Price Target

Spire Inc. is focused on enhancing its core Gas Utility segment through continued investments that are largely recovered under Infrastructure System Replacement Surcharge (ISRS), effectively mitigating regulatory lag. The recent acquisitions of MoGas and Omega signal a strategic expansion in its midstream footprint, contributing positively to its growth prospects. This strategy, alongside a strong revenue foundation primarily derived from the Gas Utility business, underpins a positive long-term outlook for Spire's performance.

Spire Inc. faces significant risks that could negatively impact its financial performance, primarily attributed to a warmer-than-expected winter, resulting in lower natural gas heating demand. Additionally, potential shifts in the regulatory environment and rising interest rates could hinder the company's operational capabilities and profitability. The possibility of a shutdown of the STL Pipeline further adds to the uncertainty surrounding Spire's revenue stability, particularly since the Gas Utility segment constitutes the majority of its income.