IDACORP upped to Buy at BofA on high margin crypto mining opportunity

Bank of America analyst Julien Dumoulin - Smith upgrades IDACORP (NYSE:IDA) to a Buy rating from Neutral due to organic growth and topping guidance. Shares of IDA rise 2.3% in pre-market trading. The company has a strong set of thematically positive transmission, renewables and hydro investments which are attractive on their own, but could be fast-tracked by Federal infrastructure legislation, the analyst writes in a note to clients. In addition, IDACORP (IDA) may provide investors with crypto mining exposure as Idaho Power already received 1,950MW of serious inbound crypto mining requests. Smith estimates ~$4/MWh margin; even if 10% of the load materializes, that would represent 1%-2% EPS. Hikes price target to $123, implying 17.6% upside from Monday's close; based on from 2024 sum-of-parts valuation. The Buy rating diverges from the Neutral Quant Rating, which has been Neutral since Aug. 25, as seen in the chart below. Previously, (Oct. 28) IDACORP EPS misses