UPDATE: ISI Group Upgrades Dominion Resources on Value Proposition from Proposed MLP

In a report published Monday, ISI Group analyst Greg Gordon upgraded the rating on

from Hold to Buy, and raised the price target from $61.00 to $66.00. In the report, ISI Group noted, “We are late seeing the value proposition derived from D's gas infrastructure businesses (D is up 21.6% YTD vs. 9.1% for the Regulated Utility group), but better late than never. Our ability to properly assess the opportunity has been enhanced by the addition of Timm Schneider to the ISI Energy & Utilities Team. He brings deep knowledge and expertise in evaluating the gas pipeline and midstream segment. His assessment of D's gas segment is the key reason for our 12-month target price increase from $61 of $66. Schneider's proprietary view on the upside being created by D's intention to form an MLP in 1H '14 is a key valuation edge.” Dominion Resources closed on Friday at $61.28.