Mizuho Securities Cuts Price Target on Duke Energy (DUK) After Meeting with Management

Mizuho Securities maintained a Neutral rating on Duke Energy (NYSE: DUK), and cut the price target to $75.00 (from $80.00), after meeting with management. The NC Dept. of Environmental Quality (DEQ) reclassified the risks presented in several of DUK's 33 coal ash basins, a change from the January 2016 draft report. The result, if upheld, is that DUK would need to accelerate capex beyond the $4B already allocated.

Analyst James Riesemann commented, "We recently hosted CFO Steve Young in New York. Although the strategic refocus towards core regulated operations should be viewed constructively, yesterday's NC DEQ coal ash remediation update reminds investors that regulated businesses have risks. Separately, we update our EPS outlook that's now below consensus reflecting the pending LatAm divestiture (dilutive), the PNY acquisition (modestly accretion), and the shares for the forward agreement. These DEQ challenges suggest DUK may trade no better than a group multiple, and our revised $75 target reflects that. Maintain Neutral."

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 $76.57 yesterday.

You May Also Be Interested In

• Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
• SL Green Realty (SLG) PT Lowered to $45 at Jefferies
• Ameriprise Financial (AMP) PT Raised to $445 at Morgan Stanley