Progress Energy (PGN) is one of the nation’s larger pure-play electricity utilities with solid rate base growth opportunity in the long-term. Given the disappointing outcome of the Florida rate case and a lowered 2010 guidance, we expect the stock to remain under pressure in the near term.

Furthermore, the weak economic conditions in Florida, which have slowed customer growth and reduced demand for electricity, remain worrisome issues. Thus, we expect 2010 to be a challenging year for Progress Energy.

Accordingly, we downgrade our recommendation to UNDERPERFORM with a target price of $36.00.

Zacks Investment Research

1. (PGN) Progress Energy Lowers Earnings GuidanceProgress Energy Inc. (PGN) provided 2010 earnings and lowered its 2009 guidance, due to the...
2. (PGN) Progress Energy Inc to Retire 11 Coal PlantsProgress Energy Carolinas, a wholly owned subsidiary of Progress Energy Inc. (PGN), announced plans to...
3. (ETP) Energy Transfer Partners – Bear of the DayOur Underperform recommendation on Energy Transfer Partners (ETP) units takes into account the bearish outlook...
4. (PNY) Piedmont Natural Gas Agrees to Provide Natural Gas to Progress EnergyEnergy services company Piedmont Natural Gas (PNY) has agreed to provide natural gas delivery service...
5. (PGN) Progress Energy to Replace Coal UnitsOn Oct 1, 2009, the North Carolina Utilities Commission (NCUC) approved Progress Energy Carolinas’ plan...
6. (SOA) Progress Software Corporation – Progress Beats Wall Street Estimates by 77.78%Progress Software Corporation (PRGS) continues to perform in a tough market as the company surprised...

Search Posts by Tag: PGN | Progress Energy Inc. | Electric Utilities | Utilities

RSS Feeds by Tag: PGN | Progress Energy Inc. | Electric Utilities | Utilities |

Other Posts by: vitalstocks | RSS Feed for this author