KeyBanc Downgrades IDACORP to Hold (IDA)
KeyBanc downgraded its rating on IDACORP (NYSE: IDA) from Buy to Hold. In a research report published today, KeyBanc stressed that recent strong performance of IDACORP's shares has moved it past KeyBanc's price target. As a result, KeyBanc decided there was no reason for it to keep a Buy rating on IDACORP.
In the report, KeyBanc states, "Shares of IDACORP, Inc. (IDA-NYSE) have surpassed our previous price target of$38.50 per share. Since our October 1, 2010 upgrade, shares have appreciated 11.9%, outperforming the Philadelphia Utility Index (UTY), which is up 6.6%. We believe shares have benefited from IDA's settlement allowing a 9.5% ROE floor on an equity balance enhanced by favorable tax strategies. Looking past the December 31, 2011 settlement expiration, we believe IDA may need to work within the boundaries of a more traditional regulatory framework, which we view as carrying higher risk. Given IDA's outperformance since our upgrade, and the shares surpassing our price target, we are lowering our rating from BUY to HOLD."
In today's trading, IDACORP lost 1.37% and is currently trading at $39.65.
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