Microsoft Deal Strengthens Black Hills Corporation (BKH) Prospects as a High Growth Utility Stock to Buy
Key takeaways
- On April 15, analysts at BMO Capital reiterated an Outperform rating on Black Hills Corporation (NYSE:BKH) and raised the price target to $91 from $84.
- The price target hike comes as the research firm expects the company to benefit from Microsoft’s purchase of 3,200 acres of land to build a data center.
- Black Hills Corp. boasts a data center pipeline of more than 3 GW, including 600 MW by 2030, as part of a five-year financial plan driven by Microsoft’s data center expansion efforts.
Microsoft Deal Strengthens Black Hills Corporation (BKH) Prospects as a High Growth Utility Stock to Buy Neha Gupta Sun, May 10, 2026 at 4:27 AM GMT+7 2 min read BKH MSFT Black Hills Corporation (NYSE:BKH) is one of the high growth utility stocks to buy according to analysts. On April 15, analysts at BMO Capital reiterated an Outperform rating on Black Hills Corporation (NYSE:BKH) and raised the price target to $91 from $84.
The price target hike comes as the research firm expects the company to benefit from Microsoft’s purchase of 3,200 acres of land to build a data center. The proposed data center in Cheyenne, Wyoming, underscores the growing interest of hyperscalers in the state, which is expected to trigger significant transformational growth. Black Hills is to provide the much-needed energy to power the data center, seen as a significant development.
Black Hills Corp. boasts a data center pipeline of more than 3 GW, including 600 MW by 2030, as part of a five-year financial plan driven by Microsoft’s data center expansion efforts. The company is also poised to capitalize on Meta Platform’s new AI data center. The Microsoft data center deal comes on the heels of the company delivering solid first-quarter 2026 results. Adjusted earnings totaled $135.1 million, or $1.79 a share, compared to $134.3 million, or $1.87 a share, delivered in the same quarter last year.