J.P. Morgan Reduces ITC Holdings Price Target To $83.00

In a report published by J.P. Morgan, ITC Holdings' ITC price target is reduced to $83.00. J.P. Morgan said that after holding meetings in the Midwest with ITC management last week, it reiterates its conviction that ITC shares offer one of the best risk/reward propositions in its coverage universe. “We believe ITC shares remain undervalued despite trading at a 40% premium to the group average regulated 2011 P/E multiple of 14.1x. Our analysis indicates that the stock should command a premium of about 75% over the group average to reflect ITC's above-average earnings growth trajectory, high authorized returns, and absence of regulatory lag. Accordingly, we reiterate our Overweight rating.” ITC Holdings closed yesterday at $66.61.