UPDATE: Deutsche Bank Initiates UIL Holdings at Hold; Earnings Confidence Priced In
Deutsche Bank initiated coverage on UIL Holdings (NYSE: UIL) with a Hold rating and a $38.00 price target.
Deutsche Bank commented, "We expect UIL to deliver EPS CAGR of 8% through 2015 driven primarily by the conversion of heating oil customers to natural gas. Despite above-average earnings growth, we are not expecting UIL to deliver any dividend growth over the next four years given a high current payout ratio (85%), above average leverage (62% debt-to-total cap), and negative free cash flow, which will likely require equity issuance. We see modest total return potential of about 1%, including a 4.4% dividend yield."
UIL Holdings closed at $39.19 on Thursday.
Latest Ratings for UIL
|Apr 2014||Deutsche Bank||Maintains||Hold|
|Mar 2014||Argus Research||Upgrades||Hold||Buy|
|Mar 2014||Bank of America||Upgrades||Neutral||Buy|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.