Jefferies upgrades Dominion Resources on NextEra merger outlook
Jefferies upgraded Dominion Resources to buy from hold and raised its price target to $76 from $65, while the stock trades at $67.20 with a P/E of 19.8 and a PEG of 0.73. Analyst Paul Zimbardo expects the NextEra Energy merger to be approved with $30 per month two-year credits and possibly a third year, and said the $3.4 billion net break fee could finance $8 billion of storage and transmission capex without new equity, supporting an 8%–9% EPS CAGR. Moody's affirmed Baa2 and moved the outlook to positive, and other analysts adjusted targets and ratings.
Jefferies raised Dominion price target to $76 and upgraded to buy
Context
Dominion and NextEra announced an all-stock merger. Regulators must still approve the…
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