We keep our 12-month target of $36, raise our '19 EPS estimate by $0.05 to $2.45 and keep '20's at $2.55. Q2 EPS of $0.58 vs. $0.55 beats our estimate and the S&P Capital IQ consensus, both at $0.56. Q2 results benefited from improved results at all segments. In the US, higher adjusted margins, lower non-fuel operating costs and other items were partly offset by less favorable weather, higher depreciation and interest costs and other items. UK results reflected higher margins, other income and favorable currency offset by less favorable weather and dilution. Our target is a 28% peer-discount 14.1x our '20 EPS estimate, which we think is merited by our view of a below-peer three-year EPS growth rate and risks surrounding the UK rate setting process. We expect significantly more clarity on the UK situation as time progresses between mid '20 and early '21 as other cases are decided. We see dividends (yielding a very attractive 5.7%) growing more slowly than EPS until at least '22.
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