Idacorp: the unchallenged leader in energy transformation

Idacorp $IDA is a regulated electric utility in a fast-growing region of the U.S. (Idaho + Eastern Oregon). It combines stable earnings with unexpectedly strong growth potential stemming from demographic expansion, hydropower and data center development.

• Low cost of energy - Hydropower keeps the price below 10 cents/kWh (1/3 of the price in northeastern states)
• Demand growth: Expected consumption growth of +8.3% per year (vs. historical +1%)
• Meta builds data center near Boise - supporting long-term demand
• Long history: Idaho Power has been in operation for over 100 years
• Planned investments: $5.6 billion over 5 years (2x more than before)

• Earnings growth: Analysts predict +8% per year, some as high as +14%
• P/E (2027e): approx. 17× - cheaper than growth utilities
• Dividend: Around 3%, with regular growth
• Target price: $129 (analyst C. Ellinghaus), +11% above current value

• Generates most of its own electricity → lower cost volatility
• Hydropower = green and cheap
• Proactive approach to regulatory changes and tariff adjustments
• Stable balance sheet: net debt/EBITDA = 4.3x, still under control
• Raised $575mn. USD 575 million in equity issuance, secured financing until 2026

Idacorp $IDA Not just another boring utility. It's a growth-oriented company with a green profile, a favorable location and strong fundamentals. At a time when investors are looking for long-term stability and fair valuations, IDA may be an attractive choice for the defensive portion of a portfolio, with the potential for natural appreciation of 8-10% per year.