"With nearly 100% of earnings derived from regulated operations, post-merger Wisconsin Energy is a premier vertically integrated electric and gas utility company and a core utility holding," Barclays analysts said.
Wisconsin Energy targets 5% to 7% annual earnings growth and similar annual dividend growth among the highest in the regulated utility universe, Barclays noted.
Regulatory landscapes and merger approval agreements provide reasonable certainty of recovery of investment and earnings growth potential that over 70% of the combined company's assets are in WI, which has a constructive regulatory environment, Barclays added.
Wisconsin Energy Group is a holding company that operates through utility energy segment and non-utility energy segment segments.
Separately, TheStreet Ratings team rates WISCONSIN ENERGY CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate WISCONSIN ENERGY CORP (WEC) 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. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: