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UPDATE: UBS Starts CMS Energy (CMS) at Buy

December 12, 2014 7:54 AM EST
Get Alerts CMS Hot Sheet
Price: $60.34 +0.70%

Rating Summary:
    13 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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(Updated - December 12, 2014 9:30 AM EST)

UBS initiated coverage on CMS Energy (NYSE: CMS) with a Buy rating and a price target of $37.00. Analyst Julien Dumoulin-Smith called it a solid 5-7% EPS growth story.

"We are initiating coverage on CMS with a $37 Price Target and Buy rating as the company's outlook is poised to be boosted by wide array of Michigan energy reforms in 2015. The 5-7% long-term EPS target is among the highest and most visible in the pure-play regulated utility space and we see multiple avenues to support growth above the midpoint. We estimate a 6.6% EPS CAGR from 2014-2017 (versus consensus at 5.4%), which embeds key upside opportunities. These incremental opportunities could add $0.15-0.20 to 2017E EPS, driving ~$3/sh relative. Given our more favorable view on smids utilities following recent acquisitions, CMS is an attractive opportunity," said Dumoulin-Smith.

For an analyst ratings summary and ratings history on CMS Energy click here. For more ratings news on CMS Energy click here.

Shares of CMS Energy closed at $33.69 yesterday.



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