UPDATE: Brean Murray Carret Initiates Vectren Corporation at Buy on Valuation
Brean Murray Carret initiated its coverage on Vectren Corporation (NYSE: VVC) with a Buy rating and a price target of $36 a share.
Brean Murray Carret said, "We are initiating coverage of Vectren Corporation with a Buy rating and $36 target price, based on the shares attaining a P/E multiple of 17x our 2014 EPS estimate of $2.12. We see significant long‐term upside earnings potential in the company's business model both in the regulated and non‐regulated businesses, and recommend investors buy shares at what we consider an attractive valuation. Additionally, we note the shares currently yield 4.7%, slightly above our combination gas/electric utility peer group. Our risks to target include regulatory environment, weather impacts, capital restraints, inherent operational risks, and proposed climate change legislation."
Vectren Corporation closed at $29.27 on Tuesday.
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