Pateint Investors May Find This A Good Entry Point For Dominion Resources

Barclays provided its outlook on Dominion Resources, Inc. D in a note published Monday.

Analysts encouraged investors willing to wait a couple of years to buy Dominion, mentioning that it underperformed its peers in the first quarter of this year owing to disappointment and skepticism in its near-term earnings outlook. The analysts estimate the company's earnings and cash flows will sharply improve after near-term challenges to 2018 are overcome.

"Cove Point LNG Export Facility Presents a Pivotal Inflection Point for the Earnings and Cash Flow Outlook. Commercial operation of the export facility should result in a sizable step-up to D's earnings and cash flow beginning in 2018," wrote Barclays.

According to Dominion's management, the Cove Point facility (import/export combined) is estimated to generate $600-800 million EBITDA. Barclays analysts assumed $575 million incremental EBITDA and $0.38 EPS from the export facility beginning in 2018 in its model. The bank now has an $85 price target on Dominion, up from $83 previously.