Maine & Maritimes Buy Rating Maintained in Update Coverage by Dutton Associates
December 03 2008 - 3:49PM
Marketwired
Dutton Associates continues coverage of Maine & Maritimes
(AMEX: MAM) reiterating its Buy rating and a 12-month $54 price
target. The 21-page report by Dutton senior analyst Sally H.
Wallack, CFA, is available at www.jmdutton.com, and at First Call,
Bloomberg, FactSet, Capital IQ, Reuters, and other leading
financial portals.
Maine & Maritimes is the parent company of Maine Public
Service Company (MPS), a regulated electric transmission and
distribution utility serving much of northern Maine, and of MAM
Utilities Services Group (USG), an unregulated corporation that
provides electrical services including transmission line and
substation design, build services for generation projects outside
of MPS's service territory, and contract work within MPS's
territory. It reported 3Q 2008 operating revenue of $12.3 million,
up 53% from $8.0 million in the prior year, and a profit from
continuing operations of $128,000, or $0.08 per diluted share,
versus the prior-year's loss of $362,000, or $0.22 per share.
Results exceeded our estimate of a loss of $0.09 per share largely
as a result of a sharply higher-than-projected revenue contribution
from USG. We believe that the long-term outlook for MAM's regulated
business is enhanced by steadily increasing energy consumption in
the U.S and rising electricity rates. Also, several developments
may have positive implications for the Company's long-term growth,
including the 2006 construction of Maine's largest wind farm and
plans for a second, even larger, wind farm within MPS's service
territory; MPS's pursuit of a large-scale transmission project that
would connect it to the New England power grid; and USG's potential
to contribute incremental revenue and earnings. We reiterate our
Buy rating on the Company's common stock. Our 12-month price target
is $54 per share or approximately 4.4x projected 2008 EBITDA.
About Dutton Associates
Dutton Associates (DA) is one of the largest independent
investment research firms in the U.S. Its 30 senior analysts are
primarily CFAs, have expertise in many industries. DA provides
continuing analyst coverage of over 140 enrolled companies, and its
research, estimates, and ratings are carried in all the major
databases serving institutions and online investors. The cost of
enrolment in the DA one-year continuing research program is US
$35,000 prepaid from the Company for 4 Research Reports, typically
published quarterly, and requisite Research Notes. DA received
$99,000 from the Company for 12 Research Reports with coverage
commencing on 5/16/2006.
DA does not accept payment of any of its fees in company stock.
Its principals and analysts are prohibited from owning or trading
in securities of covered companies. The views expressed in this
research report accurately reflect the analyst's personal views
about the subject securities or issuer. Neither the analyst's
compensation nor the compensation received by us is in any way
related to the specific ratings or views contained in this research
report or note. Please read full disclosures, and analyst
background at www.jmdutton.com before investing.
About Maine & Maritimes Corporation
Maine & Maritimes Corporation is the parent company of Maine
Public Service Company, a regulated electric transmission and
distribution utility serving approximately 36,000 electricity
customer accounts in Northern Maine. MAM is also the parent company
of MAM Utility Services Group, an unregulated corporation that
provides electrical services including transmission line and
substation design and construction. Corporate headquarters are
located in Presque Isle, Maine, and the corporate website is
www.maineandmaritimes.com.
Contact: Dutton Associates John Dutton 916/960-0623 Maine &
Maritimes Mike Williams 207/760-2499
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