KeyBanc Upgrades Northwestern Corp. (NWE) to Buy; Deserve Premium Valuation, Not Underperforming Peers

August 16, 2012 8:18 AM EDT Send to a Friend
Get Alerts NWE Hot Sheet
Price: $49.90 --0%

Rating Summary:
    5 Buy, 1 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 7 | New: 23
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KeyBanc upgraded Northwestern Corp. (NYSE: NWE) from Hold to Buy with a price target of $39.00.

Paul T. Ridzon, said, "Shares of NWE's stock have underperformed utility peers over the last month, and we are upgrading shares to BUY. We were positively predisposed on the name prior to the underperformance....We believe the underperformance has been driven by incrementally negative language around the prospects of the MSTI transmission project moving forward. We had already greatly discounted the odds of this project proceeding."

"We view the combination of attractive regulated investments and a sizable net
operating loss (NOL) favorably as the avoided cash tax payments accretively
fund equity capital requirements. At year end 2011, NWE had $457 million of NOL's, which are expected to offset cash taxes through 2015 at a minimum.

For an analyst ratings summary and ratings history on Northwestern Corp.click here. For more ratings news on Northwestern Corp. click here.

Shares of Northwestern Corp. closed at $35.85 yesterday.


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