UBS Maintains a 'Buy' on Wisconsin Energy (WEC); No Real Surprises in Rate Case
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Price: $110.49 -0.03%
Rating Summary:
9 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
9 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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UBS maintains a 'Buy' on Wisconsin Energy (NYSE: WEC) price target raised $1 to $38.00.
UBS analyst said, "Late on Friday, WEC filed its well-telegraphed, combined electric and natural gas rate case seeking two base rate increases of 3.6% in 2013 and 2014, or roughly $100MM per year. Their request doesn’t seek any changes to the existing capital structure and ROE levels. Electric is authorized 10.4% on 51% equity and the gas business is 10.5% on 49% equity. About 81% of the request is for projects previously approved by the Wisconsin PSC. The filing also includes a preliminary look at 2013 fuel costs, and requests a $25.7MM increase incrementally...What’s our take? Reasonably balances customer and shareholder interests: As far as rate cases go, this appears to be a relatively straightforward proceeding."
"WEC continues to offer one of the sector’s best risk/reward profiles: 5% sustainable growth, 10% annual DPS growth, and positive free cash flow (after dividends)."
For an analyst ratings summary and ratings history on Wisconsin Energy click here. For more ratings news on Wisconsin Energy click here.
Shares of Wisconsin Energy closed at $35.06 yesterday.
UBS analyst said, "Late on Friday, WEC filed its well-telegraphed, combined electric and natural gas rate case seeking two base rate increases of 3.6% in 2013 and 2014, or roughly $100MM per year. Their request doesn’t seek any changes to the existing capital structure and ROE levels. Electric is authorized 10.4% on 51% equity and the gas business is 10.5% on 49% equity. About 81% of the request is for projects previously approved by the Wisconsin PSC. The filing also includes a preliminary look at 2013 fuel costs, and requests a $25.7MM increase incrementally...What’s our take? Reasonably balances customer and shareholder interests: As far as rate cases go, this appears to be a relatively straightforward proceeding."
"WEC continues to offer one of the sector’s best risk/reward profiles: 5% sustainable growth, 10% annual DPS growth, and positive free cash flow (after dividends)."
For an analyst ratings summary and ratings history on Wisconsin Energy click here. For more ratings news on Wisconsin Energy click here.
Shares of Wisconsin Energy closed at $35.06 yesterday.
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