UPDATE: ISI Group Upgrades Westar Energy to Buy, Ups PT to $31

ISI Group raises its rating on Westar Energy WR to Buy from Hold and raises its price target to $31 from $27 as rate case decision may drive up multiple. ISI Group says, "WR will grow rate-base at >8% annually from'10-15, with capital for environmental retrofits and transmission. After equity needs, we expect 4.4% EPS growth over that period, with the dividend—currently at a 4.5% yield—growing in line with earnings (assuming a modestly lower authorized/earned ROE). We expect the Kansas Corporation Commission (KCC) to rule constructively in WR's pending rate case and continue to allow most environmental capital to be recovered through a rider mechanism (except for the project at the La Cygne coal plant). The FERC gives WR timely recovery of transmission investments." WR closed at $28.26 per share on Monday.