Should I Buy BKH? BKH 2026 Analysis

Should You Buy Black Hills Corp (BKH) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

72.300

1 Day change

-2.87%

52 Week Range

75.870

Analysis Updated At

2026/02/04

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Not a good buy right now at ~$74.04 pre-market: price is extended into resistance (R2 ~74.64) with RSI near the upper-neutral zone, so near-term upside looks limited versus pullback risk.
Options positioning is extremely call-skewed (very low put/call ratios) and IV is elevated, suggesting bullish crowding ahead of catalysts rather than a clean, low-risk entry.
Earnings are scheduled 2026-02-04 after hours (QDEC 2025), creating a near-term binary catalyst; given current technical extension and mixed Street view, the better entry is after the report or on a dip toward ~72.7.

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock today.

Technical Analysis

Trend: Bullish structure with moving averages stacked positively (SMA_5 > SMA_20 > SMA_200), indicating an established uptrend.
Momentum: MACD histogram positive and expanding (0.0511), supportive of upside continuation, but not a fresh breakout signal.
RSI: RSI_6 ~65.3 (upper-neutral), implying the stock is getting stretched; upside may be slower unless it cleanly breaks resistance.
Key levels: Pivot 72.72 (first “buyable dip” area); Resistance R1 73.91 (already reclaimed) and R2 74.64 (near current price 74.04). A decisive hold above ~74.64 would improve the immediate setup; failure risks a pullback toward ~72.7.
Pattern-based forward bias: Similar-pattern stats imply slightly negative next-day expectancy (-0.47%) but stronger 1-week expectancy (+8.71%), suggesting choppiness short-term with potential follow-through if catalysts cooperate.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Extremely bullish skew—put open interest 478 vs call OI 11,547 (OI put/call 0.04) and put volume essentially absent (5 puts vs 3,027 calls; volume put/call 0.0).
Activity: Total option volume 3,032, running ~279% of the 30-day average—elevated positioning/interest.
Volatility: 30D IV ~29.24 vs historical vol ~23.96; IV percentile ~86.8 (rich), implying options are priced for a bigger move (often around earnings/catalysts).
Takeaway: Options market is leaning “upside/positive,” but the extreme skew and elevated IV also suggest optimism is crowded and already priced in.

Technical Summary

Sell

Buy

Positive Catalysts

on 2026-02-04 after hours: potential upside catalyst if results/guide beat expectations.
citing data-center related upside potential (Wyoming projects).

Neutral/Negative Catalysts

adds process uncertainty.

Financial Performance

Latest reported quarter: 2025/Q3.
Revenue: $430.2M, +7.12% YoY (solid top-line growth).
Net income: $24.9M, +2.05% YoY (modest profit growth).
EPS: $0.34, -2.86% YoY (earnings per share slightly down despite higher net income).
Gross margin: 57.35%, down ~3.14% YoY (some profitability pressure).
Overall: Steady utility-style growth, but not accelerating; margins/EPS softness limits how aggressively to chase at resistance.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

2026-01-23 (BofA): Neutral; PT raised to $72 from $70 (below current ~$74), implying valuation is not compelling at current levels.
2025-11-07 (Scotiabank): Upgraded to Outperform; PT raised to $81 from $66 on data-center driven upside thesis.
Street pros vs cons:
- Pros: Potential upside from large-load/data-center projects; defensive utility profile and dividend appeal.
- Cons: Deal/merger uncertainty and related legal noise; valuation debate (at least one major PT below market).
Ownership/trading color: Hedge funds and insiders are neutral (no notable recent trend). Politician/congress activity: no recent congress trading data available.

2 Analyst Rating

Wall Street analysts forecast BKH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKH is 80 USD with a low forecast of 73 USD and a high forecast of 87 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

0 Hold

0 Sell

Moderate Buy

Current: 74.440

Low

Averages

High

Current: 74.440

Low

Averages

High

BofA

Neutral

maintain

$70 -> $72

AI Analysis

2026-01-23

Reason

BofA

Price Target

$70 -> $72

AI Analysis

2026-01-23

maintain

Neutral

Reason

BofA raised the firm's price target on Black Hills to $72 from $70 and keeps a Neutral rating on the shares. The firm updated its target after rolling its valuation to 2028 EPS and updating peer P/E multiples.

Wells Fargo

Equal Weight

Underweight

downgrade

$58 -> $53

2026-01-20

Reason

Wells Fargo

Price Target

$58 -> $53

2026-01-20

downgrade

Equal Weight

Underweight

Reason

As previously reported, Wells Fargo downgraded NorthWestern Energy (NWE) to Underweight from Equal Weight with a price target of $53, down from $58, on valuation and increasing discomfort around the deal with Black Hills (BKH). Shares are now in-line vs Utilities Select Sector Index, while the firm sees risk/reward skewing negative given mounting uncertainty around the Black Hills merger - if deal breaks, Wells expects noticeable downside risk with shares.

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BKH Should I Buy

BKH Should I Buy

Should You Buy Black Hills Corp (BKH) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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