UPDATE: Mizuho Securities Downgrades Black Hills Corp (BKH) to Neutral

Mizuho Securities analyst Paul Fremont downgraded Black Hills Corp (NYSE: BKH) from Buy to Neutral with a price target of $76.00 (from $71.00).

The analyst comments "Shares of BKH are up ~16% over the past three months, outperforming the other utilities in our coverage, up on average ~3% in the same period. Among the drivers of outperformance is the improvement in the gas LDC P/E multiple. BKH's LDC assets represents roughly 60% of the company's regulated business. Whereas LDCs were trading at a 13% P/E discount to the electric utility group when we upgraded BKH, that discount has narrowed to ~6% today. The arbitrage between private and public LDC valuations has narrowed, with public LDC valuations rising to higher levels. Absent further compression in the P/E discount, we believe BKH shares are fairly valued at these levels; dynamic PT to $76."

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

Shares of Black Hills Corp closed at $75.34 yesterday.

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