Wunderlich Upgrades Shares of SCG To Buy

Wunderlich Securities has upgraded its rating on shares of SCANA Corp. SCG from Hold to Buy based on the stocks attractive risk-return proposition. According to Wunderlich, “We believe the stock has overreacted to nuclear-related concerns, and upcoming milestones in the approval process should reduce investor uncertainty. SCG has underperformed by 5.2% year-to-date, and the stock trades at a 10.7% discount to peers. Our extensive channel checks suggest SCG remains on track to obtain the COL in late 2011 or early 2012. Our $44 price target is based on a 13.1x multiple of our 2013E, and represents 8.4% upside and 13.2% total return potential inclusive of SCG's robust and growing 4.8% yield. We anticipate publishing a detailed report later this morning.” Wunderlich maintains a price target of $44 on the stock. SCG closed at $40.59 yesterday.