Submitted by: Submitted by mimami
Views: 601
Words: 9904
Pages: 40
Category: Business and Industry
Date Submitted: 11/12/2010 04:22 PM
Company
North America United States TMT Emerging technology
17 August 2010
Global Markets Research
Utility capex analysis Transmission momentum slows
Carter B Shoop, CFA
Research Analyst (+1) 415 617-3043 carter.b.shoop@db.com
Industry Update
Top picks
Quanta Services, Inc. (PWR.N),USD18.78 ESCO Technologies (ESE.N),USD30.11 MYR Group (MYRG.OQ),USD14.22 Buy Buy Buy
Companies featured
Quanta Services, Inc. (PWR.N),USD18.78 2009A 2010E EPS (USD) 0.82 0.86 P/E (x) 26.2 21.9 EV/EBITDA (x) 10.3 7.6 MYR Group (MYRG.OQ),USD14.22 2009A 2010E EPS (USD) 0.82 0.73 P/E (x) 21.3 19.6 EV/EBITDA (x) 8.7 6.8 ESCO Technologies (ESE.N),USD30.11 2009A 2010E EPS (USD) 1.86 1.65 P/E (x) 20.5 18.3 EV/EBITDA (x) 10.9 9.3 Itron (ITRI.OQ),USD59.29 2009A 2010E EPS (USD) 2.12 4.10 P/E (x) 26.5 14.5 EV/EBITDA (x) 14.2 9.3 Echelon (ELON.OQ),USD7.35 2009A 2010E EPS (USD) -0.79 -0.81 P/E (x) – – EV/EBITDA (x) – – Badger Meter (BMI.N),USD37.49 2009A 2010E EPS (USD) 2.28 1.92 P/E (x) 15.5 19.5 EV/EBITDA (x) 10.4 9.7 EnerNOC (ENOC.OQ),USD32.22 2009A 2010E EPS (USD) -0.32 0.45 P/E (x) – 71.9 EV/EBITDA (x) 50.8 24.8 Buy 2011E 1.15 16.3 6.1 Buy 2011E 1.05 13.6 5.3 Buy 2011E 1.85 16.3 8.5 Buy 2011E 4.30 13.8 8.6 Hold 2011E -0.40 – – Hold 2011E 2.02 18.6 9.0 Hold 2011E 0.70 45.9 19.7
Bheeshm Chaudhary
Research Associate (+1) 415 6173233 bheeshm.chaudhary@db.com
In choppy spending environment, we prefer PWR, MYRG and ESE To get a pulse on the spending environment for US utilities, we conducted a detailed analysis of capex plans at 90 utilities. Key takeaways include: 1) 5 utility holding co's cut their outlook for 2010 transmission capex, while only 1 raised its outlook and 2) momentum for smart grid-related projects remained steady, as 12 holding co's made noteworthy progress in 2Q (vs 12 in 1Q). In this challenging spending environment, we recommend investors buy PWR, MYRG and ESE. See pages 7-13 for detailed capex, smart grid, DR and transmission updates. Overall...