UPDATE: Wunderlich Securities Reiterates Hold Rating, Raises PT on Westar Energy Following Solid 3Q14 Results

In a report published Friday, Wunderlich Securities analyst Mike Bates reiterated a Hold rating on Westar Energy WR, and raised the price target from $37.00 to $39.00. In the report, Wunderlich Securities noted, “Westar Energy (WR) posted 3Q14 results ahead of our/consensus expectations, driven by higher retail rates and sizeable COLI proceeds but partially offset by a higher share count and headwinds from unfavorable summer weather. Capital spending for environmental upgrades and transmission infrastructure will be the primary drivers of rate base growth through 2017, for which we are introducing an EPS forecast of $2.60. We expect below-average growth under WR's current strategic plan, and believe the stock's relatively low risk profile and above-average dividend yield justify a modest discount (2%) to the peer average valuation of 16.1x 2016 EPS. This supports an increase to our 12-month price target from $37 to $39 to realign with the group. We maintain a Hold rating on the shares.” Westar Energy closed on Thursday at $38.26.