Dominion price target lowered to $61 from $66 at BMO Capital

BMO Capital analyst James Thalacker lowered the firm’s price target on Dominion to $61 from $66 but keeps an Outperform rating on the shares. The analyst cites the Virginia House and Senate coming together in conference to pass legislation to modify the Virginia Electric Utility Regulation Act, with the key pieces of legislation including the support for deferred fuel securitization and facilitating the sale of a minority interest in the company’s Coastal Virginia Offshore Wind project. The firm is updating its model and cutting Dominion’s FY23 EPS view by 28c to $3.80, though it also believes that the combination of improved earnings quality at VEPCO and reduced regulatory/ political risk in VA should over time help the stock rerate as investors are able to focus on the company’s even more simplified regulated growth story.