Electric power and natural gas provider Duke Energy Corporation ( DUK ) on Wednesday caught a big upgrade from analysts at Goldman Sachs.
The firm said it boosted its rating on DUK from "Neutral" to "Buy" with a $22 price target, suggesting a 6.3% upside to the stock's Tuesday closing price of $20.68.
Goldman noted that price increases and lower regulatory risk should help drive multiple expansion in upcoming quarters. Accordingly, the analyst raised its 2012 and 2013 earnings estimates for DUK to 6% and 8% above Wall Street consensus levels, respectively.
Duke Energy shares posted modest gains in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of Duke Energy ( DUK ) since Dec.1, 2009, when the stock was trading at $16.68. The company has a 4.84% dividend yield, based on last night's closing stock price of $20.68.
Duke Energy Corporation ( DUK ) is a "Highly Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.8 out of 5 stars.
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