UPDATE: D.A. Davidson Upgrades ALLETE to Buy, Raises PT

In a report published Friday, D.A. Davidson & Co. upgraded its rating on ALLETE (NYSE: ALE) from Neutral to Buy, and raised its price target from $44.00 to $47.00.

D.A. Davidson noted, “We believe the shares represent a compelling investment case at the current level, in light of the utility's improving growth profile and above-average yield. We are raising our price target from $44 to $47, which equates to roughly 15.5x our 2014 EPS estimate and represents a modest premium to the current peer group valuation of ~15x 2014 estimates.”

ALLETE closed on Thursday at $42.29.

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