UPDATE: DA Davidson Maintains Neutral, $37 PT on NorthWestern Corporation post Gas Reserve Acquisitions
In a recent note, D.A. Davidson reiterated its Neutral rating and $37 price target on NorthWestern Corporation (NYSE: NWE) on the company's stated ambitions to acquire gas reserves.
In the report, D.A. Davidson noted, "NorthWestern has said it would like to invest $100-$200 million in natural gas reserves to serve its natural gas customers. Montana legislation passed in 2009 allows NWE the ability to acquire such production assets, insulating customers from the volatility of the natural gas markets and providing greater long-term rate stability. The purchase and rate basing of natural gas reserves would also provide NWE an earnings growth opportunity."
Shares of NorthWestern Corporation were trading at $37.29 at the time of posting, up 0.30 percent from Thursday's market close.
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