NU Reports Positive 2Q

Northeast Utilities (NYSE: NU) is expected to deliver above average EPS CAGR of 6.5% through 2014 by growth at distribution and generation (9.4% CAGR), and it is believed that the stock is already pricing in long-term outlook, according to Deutsche Bank.

Deutsche reports that NU raised 2010 guidance to $1.95-2.05 from $1.80-2.00 resulting from strong performance at transmission and the competitive businesses, hot summer climates and the resolution of the CT and NH rate cases, and more accommodating economic conditions throughout 2Q.

Deutsche maintains its "hold" rating and price target of $28, attributing $13 to distribution, $2 to generation, and $14 to transmission, and subtracts $1 to account for parent company and remaining competition.

Northeast Utilities closed yeseterday at $28.77.