11:39 AM EST, 11/05/2024 (MT Newswires) -- MDU Resources Group's ( MDU ) share dislocation following the recent spin-off of its construction services business presents an "attractive" opportunity for investors, BofA Securities said Tuesday.

"MDU is a premier growth utility with above-average 6-8% EPS growth and no near-term equity needs; there are no other small-cap utilities that fit that profile within our coverage," BofA analyst Ross Fowler said in a note to clients.

The brokerage upgraded its rating on the MDU stock to buy from neutral while adjusting its price objective to $17 from $31.

BofA said its regulated business valuation for the company remains unchanged as its pre-spin sum-of-the-parts analysis attributed $14 to the construction services division.

"We value the regulated electric, gas, and pipeline utilities at parity with their respective peers," Fowler said. "With portfolio simplification complete, the story shifts to execution on the stated plan set forth in March, which we view as very achievable given modest large project risk and management's history of successful execution across many roles in the company."

MDU shares were up more than 3% in recent trading.

Price: 16.00, Change: +0.57, Percent Change: +3.66