BMO Capital lowered the firm’s price target on Dominion (D) to $58 from $59 but keeps an Outperform rating on the shares. The company’s sale of its remaining 50% non-controlling interest in Cove Point to Berkshire Hathaway Energy (BRK) for a total transaction value of about $3.5B is likely on the low end of investor expectations and may pressure the shares, but the dilution may also be less than feared with lower implied EBITDA numbers, the analyst tells investors in a research note. The deal also comes with tangible credit improvements, and it is still early in the comprehensive process, the firm added.
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Read More on D:
- Dominion price target lowered to $56 from $60 at Guggenheim
- Buffett’s Berkshire Snaps Up Dominion’s Stake in US LNG Plant for $3.3B
- Dominion Energy Announces Sale of Remaining Interest in Cove Point
- Dominion Energy sells remaining Cove Point stake to Berkshire Hathaway Energy
- Dominion price target lowered to $60 from $63 at Guggenheim