Buy - Price 23.73 on June 9
by Hilliard Lyons

We were pleased to see PNY report solid EPS of 73 cents, versus 66 cents, well above the consensus of 68 cents and a penny ahead of our 72 cent estimate. Utility margin rose 5.4% to $170 million, driven by adjustments to regulatory gas-cost accounts, increased rates...and an increased customer base, partially offset by a recession-related lower margin from industrial customers....Management maintained FY09 earnings guidance of $1.45 to $1.60. We are decreasing our FY09 EPS estimate by 2 cents, to $1.63 (but still ahead of guidance), due to higher depreciation and interest assumptions. Our FY10 EPS estimate of $1.70 is unchanged. At 14.6 times and 14 times our FY09 to FY10 estimates, we think the valuation is appealing on both a relative and absolute basis. We derive our 31 target [by] using a multiple of 18 times our FY10 EPS estimate, the approximate midpoint of where PNY typically trades. Market cap: $1.74 billion.

Increase of 3.85% a 1 cent increase in the utility's common stock dividend, raising the quarterly payment to 27 cents per share. The dividend is payable April 15 to shareholders of record as of March 25. Piedmont has increased its dividend annually for 31 years

Buy - Price 28 on Sept. 9
by Hilliard Lyons

Maintain Buy and 30 target: We derive our target using a multiple of 18 times our fiscal 2009 EPS estimate of $1.65, which we believe is justified given the company's historical trading range and growth prospects. Market cap: $2 billion.

4.2%.

4%

22.9

3.7%

Upgraded by Robert W. Baird from Neutral to Outperform

3.7%

Dividend yield and growth history