Ladenburg Thalmann Upgrades IDACORP, Inc. (IDA) to Buy; ADITC Extension Application Settlement Stipulation
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Price: $137.20 -2.08%
Rating Summary:
10 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
10 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Ladenburg Thalmann upgraded IDACORP, Inc. (NYSE: IDA) from Neutral to Buy, price target raised from $43 to $45.
Ladenburg analyst says, "On December 12, 2011, Idaho Power, IPUC Staff and a large industrial customer reached a settlement stipulation. Specifically, Idaho Power may use up to $45m in aggregate of deferred investment tax credits (ADITC) over a three year-period (2012-2014) to reach a minimum 9.5% return-on-year-end equity. No more than $25m can be used in any one year. If Idaho Power return on year-end equity for 2012-2014 exceeds 10.0% but less than 10.5% then equal sharing (50/50) between Idaho Power and customers would be triggered. If Idaho Power return on year-end equity for 2012-2014 exceeds 10.5% then 75% customer sharing and 25% Idaho Power sharing would be triggered."
"In addition to our favorable view of the ADITC extension settlement stipulation (pending IPUC approval), we expect a significant common dividend increase in 2012. We believe IDA possesses the financial flexibility and liquidity to raise the dividend 25% to $1.50 p/s during 2012."
Ladenburg raises FY12 EPS estimate from $3.02 to $3.10.
For an analyst ratings summary and ratings history on IDACORP, Inc. click here. For more ratings news on IDACORP, Inc. click here.
Shares of IDACORP, Inc. closed at $40.43 yesterday.
Ladenburg analyst says, "On December 12, 2011, Idaho Power, IPUC Staff and a large industrial customer reached a settlement stipulation. Specifically, Idaho Power may use up to $45m in aggregate of deferred investment tax credits (ADITC) over a three year-period (2012-2014) to reach a minimum 9.5% return-on-year-end equity. No more than $25m can be used in any one year. If Idaho Power return on year-end equity for 2012-2014 exceeds 10.0% but less than 10.5% then equal sharing (50/50) between Idaho Power and customers would be triggered. If Idaho Power return on year-end equity for 2012-2014 exceeds 10.5% then 75% customer sharing and 25% Idaho Power sharing would be triggered."
"In addition to our favorable view of the ADITC extension settlement stipulation (pending IPUC approval), we expect a significant common dividend increase in 2012. We believe IDA possesses the financial flexibility and liquidity to raise the dividend 25% to $1.50 p/s during 2012."
Ladenburg raises FY12 EPS estimate from $3.02 to $3.10.
For an analyst ratings summary and ratings history on IDACORP, Inc. click here. For more ratings news on IDACORP, Inc. click here.
Shares of IDACORP, Inc. closed at $40.43 yesterday.
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