DA Davidson Raises Price Target on ITC Holdings (ITC), Believes Merger Deal Works Out for Everyone
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Price: $45.50 --0%
Rating Summary:
5 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson is reiterating its Buy rating on shares of ITC Holdings (NYSE: ITC) and is increasing its price target from $80 to $85 following merger announcement.
On December 5, ITC Holdings and Entergy Corp. (NYSE: ETR) announced a definitive agreement in which Entergy will merge its electric transmission assets into ITC. Following the close of merger, ITC would roughly double in size and become the largest electric transmission company in the U.S.
An analyst at DA Davidson comments, "The proposed merger appears to benefit stakeholders on both sides and our initial expectation is for a successful closure, although we believe negotiations with state regulators could be difficult and extend beyond the mid-2013 target. We are enthusiastic about ITC securing a needed foothold in the south-central region of the U.S. and believe the deal improves ITC’s overall risk profile by allowing a larger proportion of capital expenditures to be devoted to more predictable base capital investments."
The firm is maintaining its FY11-FY13 EPS estimates as they forecast the merger will not be completed until the end of fiscal 2013.
For an analyst ratings summary and ratings history on ITC Holdings click here. For more ratings news on ITC Holdings click here.
Shares of ITC Holdings closed at $76.07 yesterday.
On December 5, ITC Holdings and Entergy Corp. (NYSE: ETR) announced a definitive agreement in which Entergy will merge its electric transmission assets into ITC. Following the close of merger, ITC would roughly double in size and become the largest electric transmission company in the U.S.
An analyst at DA Davidson comments, "The proposed merger appears to benefit stakeholders on both sides and our initial expectation is for a successful closure, although we believe negotiations with state regulators could be difficult and extend beyond the mid-2013 target. We are enthusiastic about ITC securing a needed foothold in the south-central region of the U.S. and believe the deal improves ITC’s overall risk profile by allowing a larger proportion of capital expenditures to be devoted to more predictable base capital investments."
The firm is maintaining its FY11-FY13 EPS estimates as they forecast the merger will not be completed until the end of fiscal 2013.
For an analyst ratings summary and ratings history on ITC Holdings click here. For more ratings news on ITC Holdings click here.
Shares of ITC Holdings closed at $76.07 yesterday.
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