Deutsche Bank Upgrades Portland General (POR) to Buy; Attractive Risk-Reward

June 1, 2009 7:43 AM EDT

Deutsche Bank upgrades Portland General (NYSE: POR) to Buy. Price target $22.

Deutsche analyst says, "At $18/share and 8.7x our '10 EPS estimate we believe POR offers compelling value with 28% of total return potential to our $22/share target and limited fundamental downside. We believe the market has somewhat overlooked the low risk, visible and higher EPS growth nature of the POR story, especially when compared to other smaller and midsize regulated utilities that have potential equity issuance needs, greater earnings sensitivity to volume growth/decline, or higher risk service territories."

"Attractive 6% - 8% of visible earnings growth driven by: (1) No anticipated 2010 equity issuance needs (even excluding the stimulus grants); (2) Healthy rate base spending, especially on renewable projects; (3) Forward looking test year; (4) Relatively strong current industrial demand of 2% compared to declining demand for most peers; (5) Decoupled residential volumes and rates (60% of its customers) providing a shield from declining usage. Our revised '09 - '12 EPS estimates for POR are $1.81, $2.08, $2.23 and $2.30, respectively."

To see more analyst ratings on POR Click Here.

Portland General Electric Company (PGE) is publicly-owned vertically integrated electric utility engaged in the generation, purchase, transmission, distribution, and retail sale of electricity in the state of Oregon.

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