Morgan Stanley Downgrades Wisconsin Energy to Equal-Weight (WEC)

Morgan Stanley is out with its report on Wisconsin Energy WEC, downgrading WEC from Overweight to Equal-weight. In its note to clients, Morgan Stanley writes, "We forecast EPS growth of just over 6% from '10-‘13, with a current yield of 3.5%, driving a shareholder total return profile modestly better than avg. Using our proprietary DDM, factoring in lower near-term EPS and a more modest rate base growth trajectory, we derive a value of $59.50/share, which is 13.2x '12 EPS of $4.50, making the stock fairly valued and driving our downgrade to EW." Morgan Stanley lowers its PT on WEC from $63.50 to $59.50. At the time of posting, shares of WEC were trading at $58.90, down 1.17% from yesterday's close.