Zacks Investment Research upgraded shares of AGL Resources Inc. (ATG) from NEUTRAL to OUTPERFORM on May 02, 2014, with a target price of $65.00.
AGL Resources is a premier electric utility with relatively low risk earnings growth and an expanding dividend that yields a solid 3.6%. Positioned in a niche industry with high barriers to entry, this energy services holding company enjoys near-monopoly status in its area of operation. On top of this, the utility's best-in-class cost control and recession-proof business model presents a unique opportunity to own a safe stock. Sporting a low beta – translating into less volatility and a reasonable valuation, we see AGL Resources as an attractive investment in the energy infrastructure space. Considering these factors, plus the imminent disposal of the shipping unit, we upgrade our recommendation on the utility's shares to Outperform from Neutral.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on AGL Resources Inc. (ATG),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment