Fri, Jun. 24, 3:58 PM
- Chesapeake Utilities (CPK +8.6%) is higher after Hilliard Lyons upgrades shares to Long-Term Buy with a $72 price target, citing valuation and strong growth prospects.
- The only positive S&P sector in today's trade is utilities, and investors looking for safety today may be attracted by CPK, which consistently produces among the best returns on equity and capital in the industry.
- Roughly 80% of CPK's operating income is regulated, providing a predictable cash flow base from which to invest in businesses with higher returns, Hilliard Lyons says.
Aug. 10, 2015, 2:29 PM
- Chesapeake Utilities (CPK +11.7%) bounces back strong after last week's earnings-related drop, as at least three firms upgrade shares.
- Baird upgrades shares to Outperform from Neutral and sets a $52 target price, noting that despite softer Y/Y results, it believes CPK's above-average total returns fueled by natural gas service expansion and acquisitions support a 5%-6% EPS compound annual growth rate.
- The firm thinks Investors overreacted to the EPS miss, creating a buying opportunity as CPK aggressively expands natural gas service via pipeline and distribution systems extensions to meet growing commercial and industrial natural gas demand and accelerated residential fuel switching.
- CPK also enjoys upgrades to Long-term Buy from Neutral at Hilliard Lyons and to Buy from Neutral at Janney.
Chesapeake Utilities Corp. is an energy and utility company. It is engaged in the natural gas distribution; transmission and marketing of electric distribution; propane distribution and wholesale marketing; and advanced information services and other related businesses. The company operates its... More
Industry: Gas Utilities
Country: United States
Other News & PR