UPDATE: BMO Capital Raises PT on Public Service Enterprise Group Following Analyst Conference
In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on Public Service Enterprise Group (NYSE: PEG), and raised its price target from $33.00 to $35.00.
BMO Capital Markets noted, “We believe the company's Energy Strong filing, is well aligned with the views of policymakers and legislators who wish to see significantly enhanced storm recovery response from the utilities especially in the wake of super storm Sandy, which devastated the state in 2012. Backed by robust utility capex, we expect regulated EPS growth rate in the low to mid-teens through 2017. In addition, with the expiration of certain transition charges, PEG should be able to implement the ES program while keeping customers' rates roughly flat. We further note that about 75%-81% of the capex plan through 2017 is subject to contemporaneous rate recovery, which should minimize regulatory lag, in our view.”
Public Service Enterprise Group closed on Friday at $32.85.
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