UPDATE: J.P. Morgan Upgrades Dominion Resources on MLP, Cove Point Visibility

In a report published Friday, J.P. Morgan analyst Christopher Turnure upgraded the rating on Dominion Resources (NYSE: D) from Neutral to Overweight, and raised the price target from $61.00 to $68.00.

In the report, J.P. Morgan noted, “Dominion's announcements yesterday regarding midstream growth and the formation of an MLP next year will unlock value from the existing assets and pull forward the value of future earnings growth at Cove Point and Blue Racer. Together with the impact of announced incremental Marcellus and utility capex potential, we now believe D shares deserve a higher multiple. We do not believe the recent outperformance and current valuation reflect this growth due in part to the fact that some of the growth details including those of the MLP formation are yet-to-be-determined. We still feel the name has potential for significant outperformance and offers among the more attractive and diverse growth profiles in the utility space.”

Dominion Resources closed on Thursday at $59.78.