BofA Downgrades Spire To Underperform Following Acquisition

BofA Securities downgraded Spire (NYSE:SR) from Neutral to Underperform and cut its price target to $76.00 from $81.00 following the utility’s $2.48 billion acquisition of Piedmont Natural Gas announced on July 29, 2025.

The bank said it sees limited near-term earnings accretion due to premium purchase multiples, financing uncertainty, and modest synergy potential. It also cited below-average earnings growth, elevated funding costs, and execution risks from the company’s expanding footprint.

BofA does not expect a material improvement in Spire’s return on equity until 2026, when Missouri’s future test year framework takes effect.