Jefferies upgrade leads to a rise in MDU Resources stock

The stock price of MDU Resources, a company in the energy and building materials sectors, experienced a 1.8% surge in the morning trading session. This positive development is based on the upgrade of the stock from 'hold' to 'buy' by the analysis firm Jefferies, which also raised the price target to 20 USD. Jefferies emphasized the compelling value of MDU's core business and highlighted that the stock is trading at a significant discount. Analysts forecast strong annual earnings growth of 6 to 8 percent, which could help MDU stand out from the competition. The challenges that once resulted from a previous corporate spin-off have now been overcome, providing a clearer path for the future. Additionally, a future announcement regarding the Bakken East Pipeline could serve as a decisive catalyst and reevaluate the stock. Although the price increase after the initial rise cooled slightly to 16.37 USD, it still ended with a gain of 1.8% compared to the previous day. In the current market environment, today's movements are considered significant, even if they do not drastically change the fundamental business of MDU Resources. With a loss of 8.8% since the beginning of the year and a current price of 16.37 USD, MDU Resources is trading 46% below its 52-week high of 30.28 USD. Investors who purchased MDU shares worth 1,000 USD five years ago would now be looking at an investment of 729.60 USD.