Wunderlich Securities Believes Essar Financing Deal Bodes Well For Allete Inc

In a report published Thursday, Wunderlich Securities analyst Mike Bates reiterated a Buy rating and $57.00 price target on

. In the report, Wunderlich Securities noted, “Essar Steel Minnesota announced that it has closed on an alternative financing package to replace the $450 million of high-yield notes redeemed in early September, which is expected to allow the firm to complete construction of its taconite mine in development within Minnesota Power's territory of northern Minnesota. We continue to view Essar's mine as a significant potential driver of incremental electric demand for Allete (ALE) in the 2016-2017 timeframe.” Allete Inc closed on Wednesday at $45.51.