flood damage ‘minimal’
J.P. Morgan analyst Christopher Turnure took a recent tour of Midwest utility companies meeting with senior management at Ohio-based American Electric Power Co., Kansas-based Westar Energy Inc. and Xcel Energy. Turnure has a “neutral rating” on the first two utilities but an “underweight” rating on Xcel.
Turnure wrote, “We continue to expect underperformance through year-end.” That underperformance is not heavily affected by recent flooding in Colorado, Turnure added: “Impacts from severe flooding in Colorado will be minimal and are likely to be limited to some capital needs on the gas distribution side. No power plants were impacted.”
G&K merger targets pricey
Barrington Research analyst Kevin Steinke has an ‘‘outperform’’ rating on Minnetonka-based G&K Services. Management of the uniform services firm told analysts at a recent Boston conference that it maintains a pipeline of acquisition targets but thinks prices are too high. Steinke relayed management’s thoughts in his research note: “Potential sellers often still value their businesses based on prerecession performance as opposed to current realities.’’