Wells Fargo Cuts Valuation Range on NV Energy (NVE), Sees 15% Dividend Hike in May or Aug
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Price: $23.74 --0%
Rating Summary:
1 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
1 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Wells Fargo is reaffirming its Market Perform rating on shares of NV Energy (NYSE: NVE), but is reducing its price valuation range from $16.50-$17.50 to $15.50-$16.50 on weaker than expected Q4 results.
The firm highlighted the weaker than expected quarter results were driven by higher than-expected plant outage costs and regulatory lag from the Harry Allen plant.
The company is looking to use access and its improving cash flow on dividend increases, debt reduction, and possibly new investments in its core competencies. Wells Fargo notes investors can most likely anticipate a 15 percent dividend increase in May or August.
Based on comments during the company's conference call, the firm lowered its FY12 and FY13 EPS estimates from $1.25 and $1.26 to $1.15 and $1.17.
An analyst at Wells Fargo comments, "With a reasonably constructive regulatory climate in Nevada and strong renewables-related growth opportunities, we find NVE's regulated business model to be attractive. However, we think these positives are mostly offset by NVE's sub-par dividend yield, ongoing regulatory lag and risk, and our concern that a rebound in the Nevada economy could be slow to materialize."
For an analyst ratings summary and ratings history on NV Energy click here. For more ratings news on NV Energy click here.
Shares of NV Energy closed at $15.85 yesterday.
The firm highlighted the weaker than expected quarter results were driven by higher than-expected plant outage costs and regulatory lag from the Harry Allen plant.
The company is looking to use access and its improving cash flow on dividend increases, debt reduction, and possibly new investments in its core competencies. Wells Fargo notes investors can most likely anticipate a 15 percent dividend increase in May or August.
Based on comments during the company's conference call, the firm lowered its FY12 and FY13 EPS estimates from $1.25 and $1.26 to $1.15 and $1.17.
An analyst at Wells Fargo comments, "With a reasonably constructive regulatory climate in Nevada and strong renewables-related growth opportunities, we find NVE's regulated business model to be attractive. However, we think these positives are mostly offset by NVE's sub-par dividend yield, ongoing regulatory lag and risk, and our concern that a rebound in the Nevada economy could be slow to materialize."
For an analyst ratings summary and ratings history on NV Energy click here. For more ratings news on NV Energy click here.
Shares of NV Energy closed at $15.85 yesterday.
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