Avista reinstated with an Underperform at BofA

BofA reinstated coverage of Avista with an Underperform rating and $37 price target. The risks to the current EPS outlook for the Washington-based utility warrant a larger discount driven by Avista’s relatively less constructive regulatory oversight, slower relative earnings growth profile, weaker than average balance sheet, and what the firm sees as limited capex upside in the near to intermediate term, the analyst tells investors.