UPDATE: Jefferies Raises PT on Dominion Resources to $49.50
Jefferies is out with its report today on Dominion Resources (NYSE: D), raising its PT to $49.50 from $49.
In its report, Jefferies writes, "Our price target of $49.50 is based on our revised sum of the parts analysis. For Dominion's utility operations, we are using a P/E analysis, which based on our 2013 utility earnings estimate of $3.03 coupled with our 2013 regulated multiple of 14.7 times (a 12% premium to the group average P/E) results in a utility price target of $44.50. Using EV/EBITDA for Dominion's commodity businesses, we arrive at a $5.00 price target based on a 13.5 multiple of un-hedged EBITDA (a 20% premium to our merchant average multiple)."
Jefferies maintains Hold on D.
Shares of D closed Wednesday at $48.74, down 0.02% from Tuesday's close.
