UPDATE: Hilliard Lyons Cuts PT to $42 on WGL Holdings FollowingQ4 and FY Results
Hilliard Lyons reiterated its Long-Term Buy rating on WGL Holdings (NYSE: WGL) but reduced its price target from $44 to $42.
Hilliard Lyons commented, "The regulated utility narrowed non-GAAP operating losses to $0.24/share in Q4'12 from losses of $0.47/share in Q4'11 and provided the bulk of upside on a consolidated yr/yr basis. Increased rates in MD and VA were material, but the largest single driver was a decreased effective tax rate. … Management initiated non-GAAP EPS guidance for FY'13 at a range of $2.37-$2.49. The mid-point of utility guidance is $1.73; the mid-point of non-utility guidance is $0.70. … We are reiterating our Long-term Buy rating, but are trimming our 2-year price target by $2 to $42. At our target price, shares would trade at slight premiums to 5-yr average historical P/E and EV/EBITDA multiples."
WGL Holdings closed at $37.03 on Friday.
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