Wunderlich Raising Price Target On OGE Energy (OGE)

Wunderlich Securities is raising its price target on shares of OGE Energy OGE to $49 from $44, and has a Hold rating on shares. In a note to investors, Wunderlich writes, "OGE Energy (OGE) reported better-than-expected 4Q results on Thursday of $0.31 versus $0.35 (our estimate was $0.26). This led to 2010 EPS of $3.10 versus $2.66 in 2009. 4Q results were lower due to higher operating costs, but better resulting from improved midstream (Enogex) results. Holding company expenses included a $5 million donation, so results could have been $0.03 better. Weather in 2010 increased EPS by $0.16 versus normal. We are maintaining our $3.15 estimate for 2011, but increasing our 2012 estimate to $3.50 from $3.45 previously. Further, given the valuation of midstream gas companies and mid-cap utilities, we are increasing our target price on OGE to $49 from $44 previously." Shares of OGE closed at $47.19 yesterday.