Tuesday, KeyBanc Capital Markets downgraded Cleco Corp. (CNL) to a Hold rating from Buy as the company's stock is trading close to the brokerage's fair value estimates. Since their July 30, 2007 upgrade, the stock has returned over 18% and has traded through their earlier price target of $26.
Nonetheless, the firm noted that one potential positive catalyst could come from the Evangeline plant, if JP Morgan for some reason sought to buy down the tolling contract of the plant and added this contract expires in 2020. The brokerage estimates 2009 earnings at $1.70 per share and that of 2010 at $2.00 per share.
The stock closed Monday at $26.57.
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