DA Davidson Raises Price Target on Black Hills Corp (BKH), Big Things Begin in 2012
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Price: $54.54 +0.31%
Rating Summary:
2 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
2 Buy, 10 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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DA Davidson is reiterating its Neutral rating on shares of Black Hills Corp (NYSE: BKH) and is increasing its price target from $33 to $34.
The company announced it is ready to begin commercial production at its gas-fired generation facilities in Pueblo, Colorado at midnight on January 1, 2012.
The firm reports the Colorado Public Utilities Commission has recently allowed the company to increase its annual rates by 4.9 percent, but only authorized the company to have a 9.8-10.2 percent return on their equities.
An analyst at DA Davidson comments, "Management has quantified that the expected year-end 2011 expiration of the coal sales contract with the Dave Johnston Power Plant will decrease the annual production of its coal subsidiary by 1.6-1.8 million tons. As losses from this train load contract have been a drag on 2011 results, management expects the coal segment will return to profitability in 2012."
The firm has reaffirmed its FY11, FY12, and FY13 EPS estimates of $1.80, $2.35, and $2.50. DA Davidson forecasts total sales of $1.27 billion for FY11 and $1.4 billion for FY12.
For an analyst ratings summary and ratings history on Black Hills Corp click here. For more ratings news on Black Hills Corp click here.
Shares of Black Hills Corp closed at $34.23 yesterday.
The company announced it is ready to begin commercial production at its gas-fired generation facilities in Pueblo, Colorado at midnight on January 1, 2012.
The firm reports the Colorado Public Utilities Commission has recently allowed the company to increase its annual rates by 4.9 percent, but only authorized the company to have a 9.8-10.2 percent return on their equities.
An analyst at DA Davidson comments, "Management has quantified that the expected year-end 2011 expiration of the coal sales contract with the Dave Johnston Power Plant will decrease the annual production of its coal subsidiary by 1.6-1.8 million tons. As losses from this train load contract have been a drag on 2011 results, management expects the coal segment will return to profitability in 2012."
The firm has reaffirmed its FY11, FY12, and FY13 EPS estimates of $1.80, $2.35, and $2.50. DA Davidson forecasts total sales of $1.27 billion for FY11 and $1.4 billion for FY12.
For an analyst ratings summary and ratings history on Black Hills Corp click here. For more ratings news on Black Hills Corp click here.
Shares of Black Hills Corp closed at $34.23 yesterday.
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