Kenny Polcari Predicts 10-12% Market Pullback in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Market Pullback Prediction: Kenny Polcari forecasts a 10-12% market pullback in 2026, primarily due to anticipated volatility from the upcoming midterm elections, which could undermine investor confidence and market stability.
- Focus on Economic Growth: Post-midterm elections, investors are expected to shift their attention towards economic growth, GDP, and potential tax cuts from Trump's initiatives, which may influence market direction and capital flows.
- Portfolio Diversification: Polcari emphasizes the importance of a well-diversified portfolio, suggesting a cautious approach towards the tech sector in the first half of 2026 while looking at other sectors like industrials, healthcare, and basic materials to navigate market uncertainties.
- Utilities Outlook: He particularly highlights the utilities sector as likely to perform well next year due to energy demands from AI and data centers, indicating a positive long-term outlook for investments in this area.
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Analyst Views on AVA
Wall Street analysts forecast AVA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVA is 39.25 USD with a low forecast of 36.00 USD and a high forecast of 42.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 40.360
Low
36.00
Averages
39.25
High
42.00
Current: 40.360
Low
36.00
Averages
39.25
High
42.00
About AVA
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Its segment includes Avista Utilities and AEL&P. The Avista Utilities segment comprises regulated utility operations in Washington, Idaho, Oregon and Montana. It engages in electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho. It also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Additionally, it supplies electricity to a small number of customers in Montana. Avista Utilities also engages in wholesale purchases and sales of electricity and natural gas as an integral part of energy resource management and its load-serving obligation. The AEL&P segment is a regulated utility providing electric services in Juneau, Alaska that is a wholly owned subsidiary and the primary operating subsidiary of AERC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Avista Files Four-Year Rate Case, Proposing 13.9% Increase in 2027 Electric Rates
- Rate Case Filing: On January 16, 2026, Avista submitted a four-year rate case to the Washington Utilities and Transportation Commission, with a decision expected by late 2026 to address rising costs associated with power generation and infrastructure modernization.
- Customer Impact Analysis: If approved, the average residential electric bill in Washington is projected to rise from $124.23 to $157.94 by 2030, with an initial increase of $17.21 in 2027, reflecting the company's need for long-term investments to maintain safe and reliable service.
- Service Type Increases: Proposed increases vary by service type, with a 13.9% rise for most electric schedules in 2027 and a 5.0% increase for general natural gas service, highlighting the urgency of addressing escalating operating and maintenance costs.
- Customer Support Initiatives: Avista offers various support programs, including personalized bill discounts and energy-saving tools, to help customers manage rising energy costs, demonstrating the company's commitment to community responsibility and customer care.
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Avista Files Four-Year Rate Increase Proposal with 13.9% Hike in 2027
- Reason for Rate Increase: Avista's four-year rate case filing aims to address rising electricity production and procurement costs, with a proposed 13.9% increase in 2027, which could significantly impact household energy expenses and customer affordability.
- Customer Impact Analysis: If approved, the average residential electric customer in Washington would see their monthly bill rise from $124.23 to $157.94, with an initial increase of $17.21, highlighting the direct financial implications for customers amid rising operational costs.
- Infrastructure Investment: The proposal includes investments in modernizing the electric grid and hydropower infrastructure to enhance safety and reliability, reflecting Avista's strategic focus on mitigating climate change and natural disaster risks.
- Customer Support Initiatives: Avista offers various customer assistance programs, including bill discounts and energy-saving tools, to help manage rising energy costs, demonstrating the company's commitment to community support and customer care.
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