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

Furthermore, 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.

However, we like the company for its increased generation capacity, market expansion, cost-cutting initiatives, debt reduction, high dividend yield and an improving balance sheet. At this time, however, we downgrade our recommendation to UNDERPERFORM with a target price of $36.00.

Zacks Investment Research

1. (PGN) Progress Energy – Bear of the DayProgress Energy (PGN) is one of the nation’s larger pure-play electricity utilities with solid rate...
2. (PGN) Progress Energy Lowers Earnings GuidanceProgress Energy Inc. (PGN) provided 2010 earnings and lowered its 2009 guidance, due to the...
3. (PGN) Progress Energy Inc to Retire 11 Coal PlantsProgress Energy Carolinas, a wholly owned subsidiary of Progress Energy Inc. (PGN), announced plans to...
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...

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