DA Davidson & Co Raises Target to $26.50 on Avista, Maintains Neutral
DA Davidson & Co reiterates its Neutral rating on Avista (NYSE: AVA) and raises its price target by $1 to $26.50 as it rolls valuation over toward 2013.
DA Davidson & Co says, "We are forecasting Avista Utilities will contribute quarterly EPS of $0.42, which compares to $0.45 a year ago when a temporarily suspended energy recovery mechanism (ERM) added ~$0.05 per share. The quarter's benefits of rate increases granted in the past year were likely more than offset by a lower ERM benefit, higher operating expenses, and reduced wholesale demand. We believe 4Q'11 weather impacts were inconsequential."
AVA closed at $24.86 a share on Monday.
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