Spire (SR) Stock Forecast & Price Target

Spire Inc. is demonstrating a positive financial outlook driven by its consistent investment in its core utility operations, which are primarily recovered under the Infrastructure System Replacement Surcharge (ISRS), effectively minimizing regulatory lag. The recent acquisition of MoGas and Omega is expected to enhance Spire's midstream segment, potentially contributing to overall revenue growth. Given that the Gas Utility segment remains the largest revenue generator, along with strategic expansions, Spire is well-positioned for sustained financial performance in the utility sector.

Spire Inc. faces significant financial risks that could adversely impact its stock performance, primarily due to its reliance on the Gas Utility segment that generates most of its revenue but is vulnerable to seasonal fluctuations. Notably, a warmer-than-expected winter could further diminish natural gas heating demand, while potential changes in the regulatory environment and rising interest rates present additional challenges. Furthermore, the shutdown of the STL Pipeline introduces an operational risk that could affect the company’s midstream business performance.