MDU Resources upgraded to Buy at BofA following construction services spinoff

BofA upgraded MDU Resources (MDU) to Buy from Neutral with a price target of $17, down from $31. After the spinoff of the company’s construction services business, which was completed on November 1, MDU shares traded down 4%, notes the analyst, who now sees an “attractive opportunity.” MDU is a premier growth utility with above-average 6-8% EPS growth and no near-term equity needs and shares now trade 10% below the value implied by the firm’s sum-of-the-parts valuation of the remaining portfolio, the analyst tells investors.