Davenport Initiates Coverage on Public Service Enterprise Group (PEG) with a Buy

June 12, 2009 2:32 PM EDT

Davenport initiates coverage on Public Service Enterprise Group (NYSE: PEG) with a Buy. Price target $37.

Davenport analyst says, "We are attracted to 1) the company’s clean, low cost generating portfolio (50%+nuclear generation), which should benefit from future CO2 legislation; 2) the favorable location of most of its generation in the capacity constrained eastern part of PJM; 3) a regulatory climate in New Jersey under which its utility subsidiary PSE&G operates that has generally been favorable to the company in recent years; 4) a relatively strong balance sheet, ample liquidity, and sufficient cash flow to support a healthy growth capex budget without the need for additional common equity issuance; and 5) a secure dividend that should realize above average growth....Our financial projections have the company’s operating EPS increasing from $2.89 in 2008 to $3.17 in 2009, remaining flat (at $3.17) in 2010, and actually declining to $3.09."

To see more analyst ratings on PEG Click Here.

Public Service Enterprise Group Incorporated, through its subsidiaries, engages in the transmission, distribution, and sale of electric energy and natural gas to commercial, residential, and industrial customers primarily in the Northeastern and Mid Atlantic United States.

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