KeyBanc Starts Elster Group (ELT) at Buy, Uniquely Positioned for Next Wave of Smart Meter Adoption

KeyBanc initiates coverage on shares of Elster Group SE (NYSE: ELT) with a Buy rating and $19 price target.

The firm believes that shares of ELT are a really safe way for investors to gain exposure in their portfolio to two longer-term growth trends which include, "the increased gasification of the world’s energy supply; and the broad adoption of intelligent utility networks."

The company's natural gas segment should be a strong growth provider going into the future as countries look for cheaper, cleaner, and more efficient means of energy. The firm notes that near-term trends in the Gas segment could surprise to the upside.

An analyst at KeyBanc comments, "Within this market, we believe Elster is uniquely positioned for the next wave of smart meter adoption. As smart meter and smart grid adoption slows in the United States and accelerates internationally, we believe the Company could experience above industry average sales growth in all three major geographies over the next three to five years."

The firm released its 2011 and 2012 EPS estimates at $1.11 and $1.33.

For more ratings news on Elster Group SE click here and for the rating history of Elster Group SE click here.

Shares of Elster Group SE closed at $15.96 yesterday.

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