UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on CMS Energy Corporation on Good Outlook
In a report published Friday, BMO Capital Markets reiterated its Outperform rating on CMS Energy Corporation (NYSE: CMS), and raised its price target from $27.00 to $29.00.
BMO Capital Markets noted, “CMS reported adjusted 4Q12 EPS of $0.25 versus $0.10 in 4Q11 (consensus $0.24). FY2012 EPS were $1.55, 6.8% above 2011 and in line with our expectations, as the benefits of rate relief, renewables and cost cutting were only partially offset by higher depreciation/taxes and the absence of electric decoupling. CMS introduced a 2013 EPS target of $1.63-$1.66 and reaffirmed its longer-term growth rate of 5%-7% supported by its ~$6.5-$7 billion (2013-2017) infrastructure investment program. The budget includes plans to construct new gas-fired generation (700 Mw, $750 million); if approved, construction would begin in 2015, with in-service in summer 2017.”
CMS Energy Corporation closed on Thursday at $26.12.
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