UPDATE: J.P. Morgan Reiterates On Piedmont Natural Gas Company, Inc. On Long-Term Growth Outlook

In a report published Tuesday, J.P. Morgan analyst Christopher Turnure reiterated a Neutral rating on Piedmont Natural Gas Company, Inc. (NYSE: PNY), and raised the price target from $34.00 to $37.00.

In the report, J.P. Morgan noted, “Piedmont reported a seasonal loss of $(0.09) in 3Q14, lower than our $(0.06) estimate due primarily to lower residential and commercial margins and higher than expected O&M expense. PNY's equity stake in the $4.5-5bn Atlantic Coast pipeline announced last week has the potential to add meaningful earnings growth beyond 2018. In addition, $190m of related LDC investment will provide incremental rate base growth potential. We view PNY's premium vs. peers as reasonable given customer growth and JV-driven earnings growth, offset by near-term equity dilution risk and are maintaining our Neutral rating.”

Piedmont Natural Gas Company closed on Monday at $36.58.