Wunderlich Comments On SCANA's 2.5% Drop Following Japan's Nuclear Plant Fears

Wunderlich Securities has published a research report on SCANA Corporation SCG after the company reported a 2.5% drop yesterday following nuclear plants fears in Japan.

In the report, Wunderlich writes "We believe the falloff in SCG's shares is unwarranted, and we would argue that potential risks of higher costs and/or delays in new nuclear construction have already been factored into the stock. We would also point out SCG's investment in new nuclear is backed by supportive legislation. In the unlikely event new nuclear projects were scrapped altogether, we estimate 2011-2013 underlying EPS ex-new nuclear of $2.95/$3.05/$3.11, and valuation of $40.50-$42.00. SCG will host a call today at 11 a.m. EDT to discuss its continued commitment to new nuclear projects."

Wunderlich maintains its Hold rating and $44 price target.

SCANA Corporation closed yesterday at $39.04.