Bank of America: Guidance In-Line, Estimates Maintained for Westar Energy

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In a research report published earlier today by Bank of America, Westar Energy
WR
reported 2011 earnings below estimates due to higher O&M, weather and lack of COLI proceeds. Bank of America commented in the report, “WR introduced 2012 guidance of $1.85-2.00, in line with our $1.90 estimate. The key positive drivers include rate relief, 1% sales growth, $14m of COLI proceeds, a $10m reduction in depreciation, and a $7m increase in AFUDC. However, the negative drivers include a return to normal weather ($0.22) and higher O&M and SG&A expenses. We are maintaining our 2012-14E of $1.90/2.08/2.15. WR raised its dividend 3.1% to $1.32, in line with our estimate.” Bank of America maintains its Buy rating and $30 PT on Westar Energy, which is currently trading at $27.94.
Posted In: Analyst ColorReiterationAnalyst RatingsBank of America
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