In a research report released today, Argus analyst Gary Hovis maintained coverage with a Buy rating on shares of Duke Energy Corporation (DUK), and a price target of $83, which implies a potential return of about 16% from current levels.

“Duke Energy has a number of solid fundamentals. The company’s growing rate base over the next four-to-five years percentage-wise is expected to be above the peer-group average which, in turn, should drive long-term earnings growth. In addition, management is working hard to maintain flat O&M expenses, and the company is planning to sell its non-regulated generating assets in the Midwest. Moreover, we think the company’s dividend growth will be on the order of 2.0%-2.5% annually, with the DUK shares currently offering a solid dividend yield of 4.3%, of which we think income-oriented investors will take note. Other positive fundamentals include the company’s improving balance sheet, the generally positive relationships with state regulators, across-the-board operating efficiencies, and well-managed nuclear-generating assets”, Hovis wrote.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Gary Hovis currently has an average return of 11% and an 88% success rate. Hovis has a 9.6% average return when recommending DUK, and is ranked #1329 out of 3160 analysts.