Analysts Downgrade of the Day: ALLETE Inc. (ALE)

ALLETE Inc (NYSE:ALE) received a stock rating downgrade from Williams Capital Group on Mar-29-16. In a note to investors, the firm issued a Hold rating and lowered the target price on the stock from $60 to $60. The analysts previously had a Buy rating on the stock.

Analysts have a consensus target price of $56 in the 12-month period. The 52-week price range is $43.98-$58.34 and the company has a market capitalization of $2.82 billion. Analysts covering the shares maintain a consensus Buy rating, according to Zacks Investment Research. One analyst has rated the stock with a sell rating, 2 has assigned a hold rating, 0 says it’s a buy, and 4 have assigned a strong buy rating to the company.

ALLETE Inc (ALE) on February 18, 2016 reported 2015 earnings of $2.92 per share on net income of $141.1 million and operating revenue of $1.49 billion. Earnings for 2014 were $2.90 per share on net income of $124.8 million and operating revenue of $1.14 billion.

Included in 2015 results are a $20.4 million, or 42 cents per share, profit on the construction and sale of a wind energy facility by ALLETE Clean Energy, a $22.3 million, or 46 cents per share, non-cash impairment charge at ALLETE Properties, and $4.8 million, or 10 cents per share, of acquisition transaction fees related to ALLETE’s Energy Infrastructure and Related Services businesses. Earnings in 2014 included $1.4 million, or 3 cents per share, of acquisition transaction fees, and a $2.5 million, or 6 cents per share, charge associated with an Environmental Protection Agency (EPA) settlement.

ALLETE finished within its November 2015 earnings guidance of $3.35 to $3.50 per share which did not include impacts of the impairment charge or acquisition transaction fees. ALLETE also finished within its original December 2014 guidance of $3.00 to $3.20 per share which did not include the impacts of the impairment charge, acquisition transaction fees, or profit on the construction and sale of the wind energy facility.

“We are proud of our financial and operational accomplishments in 2015, especially when considering the challenges that came at us on many fronts. Our broadened energy businesses are well positioned for success in 2016 and beyond,” said ALLETE Chairman, President and CEO Al Hodnik. “ALLETE’s value proposition remains intact and our 2015 financial results are a good example of how our operating businesses support ALLETE’s mission and how management deals with economic challenges and delivers on shareholder value.”

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