Gabelli Lowering Estimates On Black Hills Corp (BKH)

Gabelli & Co. is lowering its 2012 estimates on shares of Black Hills Corp BKH. It has a Hold rating on shares. In a note to investors, Gabelli writes, "We are lowering our 2011 and 2012 EPS estimates to $1.75 and $1.95, from $1.95 and $2.10 respectively, in reflection of weak non-regulated results, including an expected modest coal mining loss for the year. We believe the utility earnings ($1.78 per share in 2011) will continue to grow consistent with prior expectations. A pending Colorado Electric $40 million rate request to be implemented 1/1/2012 will be a major driver. Our estimated 2011 and 2012 PMVs are $35 and $39 per share and assume enterprise value-to-EBITDA multiples of 9.0X for the utility, 6X for coal mining, 7X for power generation and 5X for energy marketing." Shares of BKH closed at $31.88 yesterday.