Wells Fargo Upgrades FPL Group

FPL Group (FPL), the largest producer of solar and wind power in theUS, got a Wells Fargo upgrade today from Market Perform to Outperform. Hat tip to StreetInsider.com for the following analyst comment:

“We believe shares deserve a premium valuation given a comparativelystrong EPS growth and credit profile and below average earningsvariability due to lower commodity price sensitivity…We project 5-yearannual EPS growth of 7-8% (off a 2008 ongoing EPS base of $3.84) drivenprimarily by planned regulated infrastructure investment andunregulated wind generation additions. This compares favorably withmany of FPL’s IPP/Regulated peers who we project to experience flattishEPS based on the forward power curves. We are modestly raising our 10E& 11E EPS to $4.60 & $4.80 vs. $4.55 & $4.65 afterreevaluating our model. Consensus estimates are $4.55 & $4.80.”

Shares of FPL are up about 1% today.

Wells Fargo (WFC) Upgraded FPL Group (FPL) To Outperform


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