Monetizing Renewables: Duke Energy's Asset Sale Aligns With Street's Expectations, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Duke Energy Corp (DUK) has sold its commercial distributed generation business to an affiliate of ArcLight Capital Partners LLC for an enterprise value of $364 million. This completes the monetization of the company’s Commercial Renewables (CR) business. BMO Capital analyst James Thalacker reiterated an Outperform rating on DUK shares and lowered the price target from $102 to $101. The sale is in line with the Street's expectations and allows investors to focus on the company’s efforts in securing regulatory clarity in its two primary North Carolina rate cases this year.
July 06, 2023 | 6:59 pm
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Duke Energy's sale of its commercial distributed generation business aligns with the Street's expectations, according to BMO Capital analyst James Thalacker. The analyst reiterated an Outperform rating on DUK shares and lowered the price target from $102 to $101.
The sale of Duke Energy's commercial distributed generation business is a significant event for the company, as it completes the monetization of its Commercial Renewables business. This aligns with the Street's expectations, which could have a neutral impact on the company's stock in the short term. The lowered price target from $102 to $101 by BMO Capital analyst James Thalacker could also have a slight negative impact, but the analyst's reiteration of an Outperform rating suggests a positive outlook for the company.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100