RBC Capital raised its price target on Dominion Resources to $72 from $66, maintaining a Sector Perform rating. The stock trades at $67.55, near its 52-week high.
The increase follows NextEra Energy's all-stock acquisition offer valued at $77 per share, roughly 20% premium to peer group.
Key considerations include regulatory approvals in Virginia, South Carolina, and North Carolina, plus potential divestitures in NEPOOL for Seabrook, Millstone, and renewable assets.
The analyst cited a 7% arbitrage spread for the Sector Perform rating. Dominion offers a 4.33% dividend yield.
