Spire (SR) updated its long-term financial plan following fiscal Q4 results, reflecting an 11% increase in projected earnings power, Morgan Stanley said in a note Tuesday.

Analysts said the new plan incorporates the Missouri rate case, the Tennessee acquisition, and the company's planned funding steps, including a gas-storage divestment. Spire reset its long-term growth outlook using 2027 earnings guidance as the new baseline, raising projected earnings power compared with the prior plan.

For 2026, the company projects earnings per share of $5.25 to $5.45, excluding the Tennessee utility, above consensus estimates and implying 19% growth over 2025. The 2027 outlook of $5.65 to $5.85 includes both the Tennessee acquisition and the expected sale of the storage business, according to the note.

Spire now bases its long-term earnings growth rate of 5% to 7% on a 2027 earnings midpoint of $5.75 instead of the 2024 midpoint of $4.35, a step analysts said may offer positive surprise given lower consensus estimates for 2027.

Beginning in 2028, Missouri will shift to a forward-looking test year for rate cases, which is expected to reduce regulatory lag and support higher returns. Funding for the Tennessee acquisition remains on track, and analysts said they will monitor storage divestment updates and any potential revisions to 2026 guidance once the process is complete.

Morgan Stanley raised its price target on Spire to $99 from $91 and maintained its equal-weight rating on the stock.

Shares of Spire were up 1.6% in recent trading.

Price: 86.16, Change: +1.34, Percent Change: +1.57