UPDATE: Credit Suisse Upgrades NiSource (NI) to Outperform
Get Alerts NI Hot Sheet
Rating Summary:
17 Buy, 3 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 1
Join SI Premium – FREE
Credit Suisse upgraded NiSource (NYSE: NI) from Neutral to Outperform with a price target of $50.00 (from $41).
Analyst John Edwards said, "With NI only taking its EPS growth trajectory down by 100bp to 4-6% after the separation of Columbia Pipeline Group which has ~$700mm in 2015E EBITDA, it's clear NI's growth prospects are rising and difficult to see downside to the outlook. CPG is expected to invest $12-$15b over the next 10 years which should support double digit EBITDA growth."
"We are valuing NI shares based on sum of the parts for now. We note that with $1.2B+ being invested at Columbia Op Co, mid-teens growth is sustainable for the next 5 to 10 years. Thus we are raising the multiple on 2015E EBITDA to the 14-15x range giving us a TP on all NI of $50. Together with the NTM dividend, gives a total return potential of over 25%, supportive of a relative O/P. We have given no credit for NI EPS growth falling by only 100bp despite the spin next year which suggests accelerating growth at the utility," he added.
For an analyst ratings summary and ratings history on NiSource click here. For more ratings news on NiSource click here.
Shares of NiSource closed at $40.84 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Upgrades Husqvarna AB (HUSQB:SS) to Buy
- swedbank ab (SWEDA:SS) (SWDBF) PT Raised to SEK237 at Barclays
- Raymond James Upgrades Kratos Defense & Security (KTOS) to Strong Buy
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, UpgradesRelated Entities
Credit Suisse, DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!