Citigroup Initiates A Low-Risk/Buy Rating On Westar Energy

Citigroup has published a research report on Westar Energy WR and has initiated coverage on the company with a Buy rating. In the report, Citigroup writes "Following a past acrimonious relationship with the Kansas Commission and a sub-par rate case outcome back in 2005, Westar has transformed itself to a solid regulated utility. We expect this transformation to continue with investments in Transmission and pollution control equipment within a constructive regulatory backdrop. It should be further validated in the 2011 rate case, similar to how the turnaround thesis was validated for Arizona based utility, Pinnacle West, following the conclusion of its rate case in late-2009." Citigroup has also issued a $27 price target on Westar Energy, which closed Friday at $25.16.