Pepco Holdings Given Neutral Rating at Zacks (POM)
Pepco Holdings (NYSE:POM)‘s stock had its “neutral” rating reiterated by Zacks in a research note issued to investors on Tuesday. They currently have a $28.00 price target on the stock. Zacks‘s price target indicates a potential upside of 4.52% from the company’s current price.
Zacks’ analyst wrote, “Pepco Holdings’ second-quarter 2014 earnings per share surpassed the Zacks Consensus Estimate and increased from the year-ago figure, primarily due to higher electricity distribution and network transmission revenues. In addition, higher demand from its expanding customer base continues to boost the company’s performance. Pepco plans to invest around $5.8 billion over the next five years to replace aging infrastructure and execute advanced technologies. These initiatives will enable the company to provide reliable services to its customers, along with meeting increasing utility demand. Meanwhile, Pepco is progressing well towards the merger talks with Exelon Corp. However, stringent environmental regulations and a rising debt burden might challenge the company’s future performance. Thus, we are maintaining our Neutral recommendation. “
Shares of Pepco Holdings (NYSE:POM) traded down 0.04% during mid-day trading on Tuesday, hitting $26.78. 1,705,010 shares of the company’s stock traded hands. Pepco Holdings has a 52 week low of $18.04 and a 52 week high of $27.92. The stock’s 50-day moving average is $27.4 and its 200-day moving average is $23.77. The company has a market cap of $6.736 billion and a P/E ratio of 22.03.
Pepco Holdings (NYSE:POM) last announced its earnings results on Friday, August 1st. The company reported $0.28 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.26 by $0.02. The company had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the company posted $0.22 earnings per share. Pepco Holdings’s revenue was up 6.1% compared to the same quarter last year. On average, analysts predict that Pepco Holdings will post $1.22 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Tuesday, September 30th. Shareholders of record on Wednesday, September 10th will be given a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 4.03%. The ex-dividend date of this dividend is Monday, September 8th.
A number of other firms have also recently commented on POM. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Pepco Holdings in a research note on Wednesday, July 23rd. They now have a $27.00 price target on the stock, up previously from $20.00. Separately, analysts at Ned Davis Research upgraded shares of Pepco Holdings from a “neutral” rating to a “buy” rating in a research note on Monday, May 12th. Finally, analysts at Credit Suisse reiterated an “underperform” rating on shares of Pepco Holdings in a research note on Thursday, May 8th. They now have a $27.25 price target on the stock, up previously from $21.00. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $25.05.
Pepco Holdings, Inc (NYSE:POM) is a holding company, that, through regulated public utility subsidiaries, is engaged primarily in the transmission, distribution and default supply of electricity and the distribution and supply of natural gas (Power Delivery): Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE).
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