UPDATE: Goldman Sachs Upgrades Westar Energy to Buy, Raises PT on Above-Average LT Dividend Growth Ahead

In a report published Monday, Goldman Sachs analyst Michael Lapides upgraded the rating on

from Neutral to Buy, and raised the price target from $33.00 to $34.00. In the report, Goldman Sachs noted, “We upgrade Westar Energy (WR) to Buy from Neutral with 13% total return upside potential to our new 12-month $34 price target versus small/mid-cap regulated utility peers at 4%. As environmental projects on coal plants wind down in 2015, free cash flow and dividends should improve significantly, often the main driver of share price outperformance within utilities. We maintain our 2013 outlook, but modestly raise our 2014/2015/2016 estimates from $2.34/$2.34/$2.50 to $2.37/$2.40/$2.52 on lower costs – and remain above consensus by 2%-4% on average.” Westar Energy closed on Friday at $31.36.