DA Davidson Reiterates Neutral, $36 PT on Wisconsin Energy
DA Davidson maintains its Neutral rating and $36 price target on Wisconsin Energy (NYSE: WEC) as mild weather and higher expenses are likely to hold back the company's results, which are due to be reported on Thursday.
DA Davidson says, "We are forecasting EPS of $0.31 from the Utility Energy segment, down sharply from $0.42 a year ago due to increased interest expenses (including the absence of a $13.4 million benefit from capitalized interest), and higher operating expenses. Unfavorable weather in 4Q'11 is another likely contributor to the difficult comparison from the year-ago quarter. Temperatures were extremely mild in We Energies' service territory (19% warmer than average, as measured by heating degree days), which likely drove a reduction in natural gas volumes."
WEC closed at $34.31 a share on Friday.
