NWE - Utilities NorthWestern Portland General raised at Barclays on valuation
NorthWestern (NASDAQ:NWE) and Portland General Electric (NYSE:POR) move higher Tuesday after Barclays bumped both utilities to Equal Weight from Underweight with respective $62 and $57 price targets following their relative underperformance. On NorthWestern, analyst Eric Beaumont believes the shares are now fairly valued, accounting for a lower than group average EPS growth rate, average geographic attributes and an improving but below average regulatory environment. On Portland General, Beaumont says the latest rate case settlement lifts a sizeable overhang and should provide near-term earnings support, but "questions on timing of the next rate case are already relevant given broad inflation and minimal formulaic and rider exposure for potentially elevated capex." NorthWestern's credit rating recently was cut to BBB, but the utility's "overall debt profile, valuation and dividend make it a reasonable option in a defensive or income-focused portfolio," Larry Saunders writes in a bullish analysis posted recently on Seeking Alpha.
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Utilities NorthWestern, Portland General raised at Barclays on valuation