UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Public Service Enterprise Group on Q4 EPS
In a report published Friday, Deutsche Bank reiterated its Hold rating on Public Service Enterprise Group (NYSE: PEG), and slightly raised its price target from $31.00 to $32.00.
Deutsche Bank noted, “Sound strategy and utility growth still offset by prolonged Power trough. PEG's Q4 EPS was in line while initial 2013 guidance was slightly above expectations. Mgmt highlighted recently announced plans to improve storm readiness, enhancing and adding visibility to the medium-term rate base growth story once heightened transmission capex starts to wane. We find PEG's strategy to be effective as it utilizes a strong balance sheet to invest aggressively in regulated growth projects that coincide with state energy goals. That said, we still forecast slightly declining EPS through 2015 as power hedges roll off. Maintain Hold as we see only modest upside in the stock absent an improvement in the shrinking, though still sizeable Power business.”
Public Service Enterprise Group closed on Thursday at $31.74.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.