UPDATE: D.A. Davidson Reiterates Neutral Rating, Lowers PT on Avista Corp.
In a report published Friday, D.A. Davidson & Co. reiterated its Neutral rating on Avista Corp. (NYSE: AVA), but slightly lowered its price target from $26.00 to $25.00.
D.A. Davidson noted, “Avista is executing a low-risk multi-year capital spending program to update its electric and gas utility infrastructure, which we expect will drive average earnings growth of 4%-5% per year through 2017...We value AVA shares at $25.00 (previously $26.00) over the next 12 months, which equates to 14.1x our 2013 EPS estimate. We expect the utility's relatively low-risk pipeline of capital projects to support earnings and dividend growth in line with peers over the next five years, but believe other firms in the industry present a more compelling opportunity at the current share price.”
Avista Corp. closed on Thursday at $23.81.
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