3. Avista Corp.
Fitch highlights Avista Corp (AVA) as a potential regulated utility takeover target. Currently, the company carries a market cap of $1.46 billion and a dividend yield of 4.39%.
The Spokane, W.A -based utility has electricity generation, transmission and distribution operations through its Avista Utilities unit, which also distributes natural gas. The company also has a 76% stake in Ecova, an energy expense management service company that operates throughout the U.S. Ecova's main businesses is helping utilities and telecoms manage leasing arrangements, in addition to tracking energy and water use. Founded in 1889 as the Washington Water Power Company, Avista got its present name through a 1998 name change. Avista's utility serves customers with a mix of hydro, natural gas, coal and biomass generation that is delivered via over 2,100 miles of transmission lines and 17,000 miles of distribution lines to roughly half a million customers. Fitch notes that the company operates in three regulatory jurisdictions, all of which would have to approve any merger or takeover. The company is expected to earn 45 cents a share when it reports fourth quarter earnings on Feb. 15, according to Zacks consensus estimates. Avista is expected to have revenue of $1.6 billion and net profits of $101 million in 2011, according to Bloomberg consensus estimates. In 2012, those sales and profit numbers are expected to $1.71 billion, but profits will rise to $105 million. Analysts give Avista an average price target of $24.90 a share, a discount to the company's current share price of $25.28. For more on Avista shares, see TheStreet's portfolio of the highest yielding electric utility stocks. In 2011, the company's shares gained over 14%, in line with overall sector returns. Bernstein analyst Hugh Wynne highlighted Avista as a potential takeover candidate because of its low valuation, in an Oct. 2011 research note.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
