An analyst has raised his investment recommendation on Mighty River Power and says the company could raise its dividend payout for the year ending June 2014.
Forsyth Barr analyst Andrew Harvey-Green was recommending investors hold Mighty River Power shares but now says they should accumulate them.
The shares, sold by the Government in May at $2.50 each, hit a record low at $2.16 last week.
Mr Harvey-Green said there were three main reasons behind his upgrade, including a soft share price for Mighty River Power shares in the past couple of months.
Despite that, Forsyth Barr was "feeling more positive" around the shares.
"We've increased our target price by 5c a share on the lower operating cost outlook and we've also increased our dividend forecast for the (2014) year," he says.