Jefferies Raises Price Target on Spectra Energy (SE) Following Solid Q1 Earnings

Jefferiesis maintaining its Buy rating on shares of Spectra Energy (NYSE: SE) and is raising its price target from $30 to $32 following positive Q1 earnings.

The company reported its Q1 results with EPS of $0.54 which was ahead of the firm's and Street's estimates of $0.50 and $0.52. Also, SE's U.S. Transmission segment ongoing EBIT increased by 13.0% in Q1 to $279 million. Gas Distribution EBIT also increased by 14.4% to $167 million during the quarter, but was due to the cold weather.

The firm notes that the primary drivers for the quarter were fee-based earnings growth from expansion projects placed into service, a stronger Canadian dollar, colder weather and favorable commodity prices.

Jefferies is reiterating its FY11 and FY12 EPS estimates of $1.75 and $2.00.

For more ratings news on Spectra Energy click here and for the rating history of Spectra Energy click here.

Shares of Spectra Energy closed at $28.03 yesterday.

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