Ahead Of The Bell: Portland General Elec. Upgraded

NEW YORK (AP) — Shares of Portland General Electric Co. are attractively priced and have potential to rise given the expectations for long-term company growth, said an analyst as he upgraded the stock of Oregon's largest utility.

"We believe the market has somewhat overlooked the low risk, visible and higher earnings per share growth nature of the Portland General Electric story, especially when compared to other smaller and midsize regulated utilities," said Deutsche Bank analyst Ameet Thakkar, who expects long-term earnings per share growth of 6 to 8 percent.

Thakkar noted that unlike its peers, Portland likely won't need to issue equity in 2010, even without stimulus grants. The company's growth outlook also outshines its peers given its robust capital spending program and strong industrial demand, he said.

Thakkar upgraded Portland's stock to "Buy" from "Hold" with a $22 price target. He estimates a full-year profit of $1.81 per share. He raised his 2010 profit forecast to $2.08 per share, from $1.90 per share.

In its first-quarter earnings report released in May, Portland reaffirmed it expects full-year 2009 profit between $1.80 per share and $1.90 per share. It also reaffirmed its long-term annual earnings growth expectation of 6 to 8 percent beginning with 2009. The company did not provide 2010 forecasts.

Analysts polled by Thomson Reuters predicted a 2009 and 2010 profit of $1.80 per share and $1.94 per share, respectively.

Shares of Portland closed at $17.99 on Friday.