Data center business growth prospects strong! Citigroup raises target price of Evergy Inc. (EVRG.US) to $89.

Recently, Citigroup raised its target price for American Electric Power Company, Inc.'s subsidiary Evergy Inc. (EVRG.US) from $79 to $89 and maintained a "buy" rating on the stock. Citigroup pointed out that the company's third-quarter earnings conference call provided clearer information about its growing data center load. Evergy Inc.'s main businesses include power supply, power transmission, and new energy generation, providing clean, reliable, and safe energy to approximately 1.7 million customers in Kansas and Missouri through its subsidiaries. In its third-quarter earnings release for the 2025 fiscal year, Evergy reported continued progress in its collaborations with two major data center customers and announced the signing of several service agreements totaling around $200 million. These agreements come from funding commitments from the aforementioned customers. The company expects these projects to generate approximately 600 megawatts of peak demand by 2029, leading to an upward revision in overall load growth forecast to a compound annual growth rate of 4%-5%. Additionally, the company has added a third data center project, demonstrating significant progress in early agreements and project expansion. Evergy also narrowed its adjusted earnings per share (EPS) guidance range for 2025 to $3.92 to $4.02, citing performance impacts from "lower-than-usual summer temperatures." The company's management emphasized that its long-term fundamentals remain strong and are supported by what they referred to as "generation-level economic development opportunities" and investments necessary to achieve this growth. Furthermore, the company announced a 4% increase in quarterly dividends on November 6, marking the 20th consecutive year of dividend growth.