Nicor Inc. (NYSE: GAS) Fairly Valued At Current Level, Future Bright

Nicor Inc. (NYSE: GAS) was given a near-term Hold rating by Argus as analysts feel that Nicor is currently fairly valued at its current levels although Nicor reported a highly positive rate increase. Argus estimates EPS of $2.65 for FY09 and $2.75 for FY10.

Nicor reported third quarter EPS of $0.30 as compared to $0.03 from the same quarter last year because of lower gas costs. Net income for the third quarter was $13.6 million from $1.3 million in the third quarter of 2008.

Argus lowered its financial strength rating on Nicor from Medium-High to medium because of Nicor’s increased issuance of commercial paper. However, Argus puts a five-year Buy rating on Nicor as Nicor’s long-term future looks bright.

As a result, shares of Nicor Inc. (NYSE: GAS) fell 0.07% to $39.82 in the pre-market hours. The 52-week trading range for GAS is $27.50 - $40.83. So far in 2009, Nicor gained over 14%. In the previous trading session, GAS closed at $39.85.