UBS Maintains a 'Buy' on Duke Energy (DUK); FERC Approval for Progress Energy Merger; What Are Industry Implications?
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Price: $70.19 -1.68%
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade DUK Now!
UBS maintains a 'Buy' on Duke Energy (NYSE: DUK) price target of $25.00 (from $24.00).
Analyst, Jim von Riesemann, said, "Federal regulators approved the Duke (NYSE: DUK) / Progress (NYSE: PGN) merger. DUK/PGN have 15 days to accept what we view as FERCs reasonable conditions for oversight and market monitoring. North Carolina must now rule on the merger settlement. So. Carolina must approve the JDA agreement. Combined we see few remaining hurdles. SC must approve the JDA agreement. We believe the deal will close on or around July 1."
Riesemann also feels this deal has opened the road for more consolidation in the industry. He sees the West, upper Midwest and Central Plains as areas that are ripe for consolidation. But, the market multiple is lower in this environment and Riesemann thinks M&A may be at slower pace because companies may not want to settle for lower merger premiums.
For an analyst ratings summary and ratings history on Duke Energy click here. For more ratings news on Duke Energy click here.
Shares of Duke Energy closed at $23.15 yesterday, with a 52 week range of $16.87-$23.23.
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Analyst, Jim von Riesemann, said, "Federal regulators approved the Duke (NYSE: DUK) / Progress (NYSE: PGN) merger. DUK/PGN have 15 days to accept what we view as FERCs reasonable conditions for oversight and market monitoring. North Carolina must now rule on the merger settlement. So. Carolina must approve the JDA agreement. Combined we see few remaining hurdles. SC must approve the JDA agreement. We believe the deal will close on or around July 1."
Riesemann also feels this deal has opened the road for more consolidation in the industry. He sees the West, upper Midwest and Central Plains as areas that are ripe for consolidation. But, the market multiple is lower in this environment and Riesemann thinks M&A may be at slower pace because companies may not want to settle for lower merger premiums.
For an analyst ratings summary and ratings history on Duke Energy click here. For more ratings news on Duke Energy click here.
Shares of Duke Energy closed at $23.15 yesterday, with a 52 week range of $16.87-$23.23.
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