Post by
Johnwith30years on Feb 26, 2021 9:47am
So what now...
AsI posted earlier utilities are in a slump just now due to jitters over interest rates and more money flowing into other sectors but the low interest environment will continue for quite some time and a small rise won't hurt utility earnings. I think analysts will maintain targets. The nice earnings beat was offset by the quick glance people make at lower EBITDA but multiple reasons for that and the guidance for 2021 is very solid - not few shares bought or sold this a.m and larger players will wait to make decisions Good to wait to see what analysts have to say. My longer term target of 24 is fully intact.
Comment by
jeffpei on Feb 26, 2021 9:48am
Thanks John. You are the voice of reason.
Comment by
Pingopallie12 on Feb 26, 2021 9:53am
Stock is undervalued EPS = 1.50$ at a 15 multiple: $22.50 at a 17 multiple : $25.50 sector rotation is an issue however the fundamentals will prevail.
Comment by
Johnwith30years on Feb 26, 2021 9:59am
Agreed. ... I have a large position so hedge with a small portion of short calls for additional income which I can roll out should the stock suddenly move up beyond my strike price. But agree completely that fundamentals eventually will win out and with steady/rising dividend the wait is painless. ( Frustrating but painless.