UPDATE: Deutsche Bank Initiates Wisconsin Energy with Hold on Fair Valuation

In a report published Tuesday, Deutsche Bank analyst Jonathan Arnold initiated coverage on

with a Hold rating and $42.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage of Wisconsin Energy with a Hold rating and $42 price target. Through 2015, we expect WEC to deliver EPS growth of 5% per year on average, in line with regulated utility peers, and well above average dividend growth of about 11% per year given a below average current payout ratio and strong free cash flow. While WEC is a well-run utility, operating in a constructive regulatory environment, with an enviable cash flow outlook, we believe the stock is fairly valued at current levels.” Wisconsin Energy Corporation closed on Monday at $40.29.