Deutsche Bank Says Buy Dominion Resources (D)

Deutsche Bank has a Buy rating and a $46.50 price target on shares of Dominion Resources D. In a note sent to clients, Deutsche Bank writes, "We are upgrading D to Buy from Hold, based on D's strong regulated growth plans and its execution track record as well as an attractive New England merchant generation fleet. We expect the merchant segment's earnings to be relatively flat in 2012 versus 2011 and turn upward in 2013, removing a drag on strong regulated earnings growth. We view D's 5%-6% EPS growth target starting in 2012 as achievable, with upside in the event of stronger improvement at merchant gen or the realization of additional regulated growth." Shares of D gained 35 cents yesterday to close at $42.61, a gain of 0.8%.