Barclays Says Duke Energy 'Off To A Good Start'

In a report published Monday, Barclays analysts maintained an Equal-weight rating on

, while reducing their price target from $84 to $82. Duke Energy reported its 1Q15 operating earnings at $1.24, up from $1.17 posted in 1Q14. The upside was driven by the robust performance of the company's core Regulated Utilities and Corporate segments. Decreased contribution from the company's international business was offset by the benefits derived from the Midwest Generation assets during 1Q. The analysts expect the company's international business to continue to be under pressure due to Brazil hydro for the rest of this year. "Owing to the ongoing drought conditions, DUK expects thermal plants in Brazil to continue to dispatch ahead of hydro for the remainder of this year and into 2016," the report said. The company's federal coal ash settlement in court is scheduled for May 14. "DUK is working to resolve the debarment issue that arose as a result of the settlement," the analysts mentioned. Although Duke remains a premium regulated utility, the analysts "acknowledge the influence of recent and lingering operational items, such as the NC coal ash spill and pressures at the International segment, including the oil price decline, foreign exchange rate, and Brazilian hydrology."