NEW YORK (TheStreet) -- Northwestern Corp. (NWE) shares were upgraded to "buy" from "hold" by analysts at KeyBanc on Monday, who also set a price target of $51.50 on the company's shares.
The price target represents a 7% increase over the company's closing price on Friday.
"While we appreciate the fact that shares are likely to be subject to an overhang from the need to issue up to $400 million of equity to fund the hydro acquisition, we believe investors with a longer-term perspective will be rewarded by commencing to build a position now," said analysts.
Must Read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates NORTHWESTERN CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORTHWESTERN CORP (NWE) 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."