DA Davidson Reiterates Neutral, $36 PT on Wisconsin Energy

DA Davidson maintains its Neutral rating and $36 price target on Wisconsin Energy

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.