Story updated at 9:55 a.m. to reflect market activity.
Public Service gained 0.7% to $37.58 in morning trading.
The analyst firm set a price target of $44 for the company. Public Service is leveraged to an improved look for forward power prices according to Argus analysts.
Separately, TheStreet Ratings team rates PUBLIC SERVICE ENTRP GRP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate PUBLIC SERVICE ENTRP GRP INC (PEG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PEG's revenue growth has slightly outpaced the industry average of 7.9%. Since the same quarter one year prior, revenues rose by 15.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Multi-Utilities industry average. The net income increased by 20.6% when compared to the same quarter one year prior, going from $320.00 million to $386.00 million.
- Net operating cash flow has increased to $1,116.00 million or 27.25% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.09%.
- You can view the full analysis from the report here: PEG Ratings Report