- Dominion Resources (D -0.4%) is maintained with an Outperform rating but with an $84 price target, raised from $80, and improved 2019 and 2020 earnings estimates at Barclays, reflecting an updated projected in-service date for the Atlantic Coast Pipeline.
- Dominion now expects the pipeline to begin commercial operation in Q4 2019, a year later than original guidance, after ACP was forced to devise an alternate route to satisfy government concerns raised by the U.S. Forest Service, adding to an already an extensive FERC review process.
- The company has said it expects construction to begin in Q3 2017, which Barclays believes still is overly optimistic and says it always had anticipated a delay at least to mid-2019.
- The firm notes Dominion has indicated that it might increase the dividend growth rate to more than 8%/year starting in 2018.