智通财经网·2025-08-21 07:14Group 1 - Bank of America Securities upgraded the rating of Black Hills Corporation (BKH.US) from "underperform" to "neutral," raising the target price from $57 to $64, indicating an expected improvement in strategic positioning and fundamentals post-merger [1] - The merger with NorthWestern Energy Group (NWE.US) is valued at $15.4 billion, with NorthWestern shareholders receiving 0.98 shares of Black Hills stock for each share they hold, resulting in a 56% ownership for Black Hills shareholders and 44% for NorthWestern shareholders [1] - The board of the merged company will consist of 11 members, with 6 appointed by Black Hills and 5 by NorthWestern, and the transaction does not require new stock issuance for funding [1] Group 2 - The target price increase to $64 reflects updated price-to-earnings ratios for the electricity and natural gas segments, now at 16.1 times (up from 15.1) and 15.7 times (up from 15.1) respectively [2] - Earnings per share forecasts for fiscal years 2025, 2026, and 2027 remain unchanged at $4.09, $4.31, and $4.56, pending further details on capital expenditure plans, synergies, delivery, and post-merger capital allocation [2] - Management anticipates a 5-7% increase in earnings per share post-transaction completion, up from a previous expectation of 4-6%, with the deal expected to close within 12 to 15 months, pending regulatory approvals [2]