Evergy Energy (NASDAQ: EVRG), an electrical utility serving the greater Kansas City region, is poised to benefit from significant demand for AI infrastructure, with a projected project backlog of 15 gigawatts (GW). This comes amidst strong investments in data center projects by companies like Alphabet, Meta Platforms, and NVIDIA in the area, which could lead to hundreds of millions in projects pending budgetary approvals in the coming months.
Analysts remain bullish on Evergy’s outlook, with 10 of 11 ratings currently at Buy and a consensus price target suggesting a potential 10-25% upside. The company’s dividend yield stands at approximately 3.75% for 2025, having increased for 22 consecutive years, positioning it for future recognition as a Dividend Aristocrat by 2029. However, institutional selling, which constitutes 87% ownership, and increasing short interest at 5.5% have created headwinds in Q4, capping potential gains despite a generally favorable forecast.
As of early December, Evergy’s stock is in an uptrend, having recently retreated to a trendline, indicating a potential opportunity for further gains. The stock’s ability to maintain support levels near the 150-moving average will be critical for its trajectory moving into 2026; failure to do so might expose it to deeper corrections near $68.
