UPDATE: Bank of America Reinstates Coverage on Portland General Electric as Improving Valuation Reflects Outlook

In a report published Friday, Bank of America analyst Brian Chin reinstated coverage on Portland General Electric POR with a Neutral rating and $32.00 price target. In the report, Bank of America noted, “Portland General Electric (PGE) is a single state regulated utility with service territory in Oregon. Through 2013 the company successfully won RFP bids for three major generation projects with a total expected investment of $1,250 million. Using a baseline average rate base of $3.1 billion in 2012, Portland General should grow rate base at an average CAGR of 8% by 2017. The company's ability to earn AFUDC, a forward looking test year, and a renewable investment tracker results in minimal regulatory lag, and drives EPS growth throughout our forecast period. Excluding one time adjustments in 2013, our 2013-2016 EPS forecast is $1.74 / $2.04 / $2.23 / $2.34.” Portland General Electric closed on Thursday at $30.24.