Friday, October 15, 2010

NSTAR (NYSE:NST) Should Be Low Through 2012

NSTAR (NYSE:NST), which serves the energy needs of Massachusetts, has a electric rate agreement in place through 2012, which should reduce regulatory risk for the energy company.

Consequently, while leaving their "Hold" rating in place, Jefferies raised their price target on NSTAR from $36.50 to $38 a share.

Jefferies said, "We view NSTAR as a well-managed, low-risk transmission and distribution utility with above-average dividend growth potential. An
electric rate agreement, implemented in 2006, should reduce regulatory risk through 2012."

NSTAR closed Thursday at $39.11, gaining $0.05, or 0.13 percent.

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