UPDATE: Bank of America Upgrades Great Plains Energy on Improved Regulatory Outlook

In a report published Tuesday, Bank of America analyst Brian Chin upgraded the rating on

from Underperform to Buy, and raised the price target from $23.00 to $27.00. In the report, Bank of America noted, “We are upgrading GXP shares to Buy from Underperform due to 1) the possibility of improved regulatory treatment in Missouri following the company's planned rate cases in 2015, 2) improved visibility on 2016 EPS which is materially higher than 2015, 3) traction on improved Missouri becomes visible as state legislative bills can be publicly filed on 12/1/13 and the state legislative session starts on 1/8/14...Over the next 12 months, we see potential approvals of 1) a transmission cost deferral by Commission order, 2) a property tax rider by state legislation, 3) a revival of the Infrastructure System Replacement Surcharge concept in state legislation, and 4) increased interest in implementation of a fuel clause at KCP&L GMO. While each of these remains possibilities, we believe there is enough evidence to suggest a more investment-friendly regulatory environment may be taking hold in Missouri.” Great Plains Energy closed on Monday at $24.35.