UPDATE: Bank of America Raises PT on Vectren Following ProLiance Announcement
In a report published Friday, Bank of America analyst Gabe Moreen reiterated a Neutral rating on Vectren (NYSE: VVC), and raised the price target from $29.00 to $32.00.
In the report, Bank of America noted, “After market close on 18 June 2013, VVC announced ProLiance, a natural gas marketing joint venture (JV) in which VVC holds a 61% stake, sold its wholesale gas marketing business to Energy Transfer Partners, LP (ETP). The deal is positive for VVC, in our view, as it allows the company to dispose of long-term pipeline and storage commitments that have generated losses in the past few quarters, and effectively stymies ongoing negative earnings contributions from the JV in the future. During the business update call on 19 June 2013, mgmt noted VVC will take a charge of $26-28mn in 2Q13 related to the disposal of these assets, and expects ProLiance's total 2013 EPS contribution to fall within a range of a loss of $0.10-0.12 per share.”
Vectren closed on Thursday at $32.48.
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