Bull of the Day: NiSource (NI)

We have upgraded our recommendation for NiSource (NI) to Outperform, as we believe the recent equity issue removes a key apprehension on the stock. The issue makes way for the company to reach its $1 billion investment target while comfortably meeting its long-term 3%-5% EPS growth target.

NiSource’s strategy of divesting its non-core businesses and transforming into a pure-play regulated company bodes well in our view. The company has improved its balance sheet and maintained its investment grade credit ratings in the past year.

We believe income-seeking investors will find the company’s current dividend yield of 5.4% attractive. Our target price of $20.00 is based on the 2011 P/E multiple of 15.5x.

NISOURCE INC (NI): Free Stock Analysis Report

About Zacks Investment Research 1767 Articles

Zacks Investment Research is one of the most highly regarded firms in the investment industry. In 1978 Zacks originated the concept of utilizing earnings estimates revisions to make profitable investment decisions. Zacks offers multiple investment products and services to help investors achieve superior returns.

Visit: Zacks.com

Be the first to comment

Leave a Reply

Your email address will not be published.