UPDATE: Bank of America Merrill Lynch Raises Price Objective on Westar Energy to $29 (WR)

Bank of America Merrill Lynch is out with its report today on Westar Energy WR, raising its price objective from $27 to $29. In a note to clients, Bank of America Merrill Lynch writes, "We are updating regulated valuation multiples from a 2012 to 2013 basis. Our $29 P.O. is based on an average regulated P/E of 13x our 2013E distribution earnings of $1.70, plus 15x our 2013E transmission earnings of $0.46. With a 4.7% yield and 3% dividend growth, we believe total return is attractive. Moreover, WR is trading at a 12.6x 2013E, a 5% discount to the regulated average, which we believe is unwarranted given its yield and dividend growth." Bank of America Merrill Lynch maintains Buy on WR. Shares of WR closed Friday at $27.10.