Wunderlich Securities Maintains Hold Rating, $44 PT On SCG

Wunderlich Securities is maintaining its Hold rating and $44 PT on shares of SCANA Corp. SCG.

“Management's conference call yesterday centered on design and geological differences between Hold-rated SCANA's nuclear fleet and that of the Fukushima Daiichi plant in Japan,” Wunderlich Securities writes. “The expected timeline for major new nuclear milestones remains unchanged. SCG expects to receive a commercial operating license (COL) in late 2011/early 2012.

“While a potential delay in obtaining the COL would be a headline risk, the impact to 2012 EPS would be minimal due to timing of rate relief. We calculate a 30% delay in nuclear capex in 2012E-2013E would result in valuation of $42-$43. That said, concerns regarding the ongoing Japanese nuclear situation are likely to put a ceiling on the stock near term.”

SCANA closed Tuesday at $38.73.