When it comes to the imprecise science of foretelling the direction of stock prices, Wall Street analysts can be all over the map. But they're of one mind regarding the shares of Progress Energy Inc., the Raleigh, N.C., parent of Progress Energy Florida of St. Petersburg.
In a rare instance of unanimity, all 17 analysts who follow the utility rated its stock a lukewarm "neutral" or "hold" as of last week. That means they either see little upside for Progress over the next 12 months or they expect the stock to move in line with other utility stocks.
The latest analyst to place a neutral rating on Progress was Credit Suisse First Boston utility analyst Laura Blanco, who initiated coverage of the company March 17. Her views sum up the Wall Street consensus: While Progress has a strong regulated utility business and is expected to make further headway in cutting debt, the company also faces modest earnings growth through 2005, expiring contracts in its wholesale power business and regulatory uncertainty after its rate-reduction settlement with the state of Florida expires next year.
Complete agreement among this many analysts is seldom seen, according to John Butters, a research analyst for Thomson First Call, which keeps a running tally of analyst ratings.
"I can't say I've ever seen a company where it's all the same rating," he said.
