Jefferies upgraded Dominion Resources (NYSE:D) from Hold to Buy and raised the price target to $76 from $65. The stock trades at $67.20 with a P/E ratio of 19.8.
Analyst Paul Zimbardo expects the NextEra Energy merger to be approved, with $30 per month two-year credits as a key customer benefit. He also sees potential for a third year.
Zimbardo noted that if the deal fails, Dominion's standalone plan is stronger than ever. The $3.4 billion break fee could finance $8 billion in capital expenditures.
