UPDATE: Williams Capital Group Reiterates Buy Rating, Raises PT on OGE Energy
In a report published Wednesday, Williams Capital Group reiterated its Buy rating on OGE Energy Corp. (NYSE: OGE), and raised its price target from $55.00 to $60.00.
Williams Capital noted, “Our target price reflects a P/E valuation of 15.8x our 2013 recurring EPS expectations and approximately a 13% total return potential over the next 12 months, including the 2.87% current indicated dividend yield. We are reducing our 2012 recurring EPS estimate to $3.57 from $3.59. However, we note that OGE appears on track to meet or exceed the upper-end of management's 2012 EPS guidance range, particularly with above average temperatures thus far in the third quarter. Our 2013 recurring EPS estimate remains $3.80. However, we are initiating quarterly estimates. Despite the recent Oklahoma rate settlement, OGE appears very well positioned for growth. System hardening, transmission, and generation projects should provide ample utility growth, in our view. The recent Chesapeake announcement only enhances our expectations for growth in the midstream business.”
OGE Energy Corp. closed on Tuesday at $54.62.
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