Dominion Energy downgraded to Neutral at Credit Suisse on strategic review
Dominion Energy (NYSE:D) on Monday was downgraded to a Neutral investment rating from Outperform by analysts at Credit Suisse. They said the utility company’s announcement of a strategic review of its business was reason for caution.
Dominion's (D) stock fell 5% by 10:15 a.m. ET in regular trading.
"The business review will contemplate alternatives to Dominion’s business mix, capital allocation and regulatory options with the goal of creating greater predictability on Dominion’s value proposition,” Nicholas Campanella, analyst at Credit Suisse, said in a Nov. 7 report. “Most outcomes of the wider strategic review we think lead to EPS dilution versus the current 6.5% long-term EPS compound annual growth rate.”
Credit Suisse lowered its price target for Dominion (D) to $69 a share from $76 a share, based on a sum-of-the-parts valuation and changes to its EPS estimates for the company.
Dominion (D) last week in a quarterly announcement said Q3 net earnings rose to $778 million, or $0.91 a share, from $654 million, or $0.79 a share, a year earlier, while declaring a quarterly dividend of $0.6675 a share. The company also replaced its CFO and started a "top-to-bottom" business review.
Dominion (D) this year had declined 14% through the end of Nov. 4, compared with a 21% drop for the Standard & Poor's 500 index (SP500).