Morgan Stanley Picks A Dozen Utilities From Global Pool

In divergent utilities markets worldwide, a recent report focused on deregulation in Australia, a major restructuring in Latin America and efforts in India to boost coal production. A team of 27 Morgan Stanley analysts authored the report, which named a dozen favored stocks. In the U.S., the analysts liked Calpine Corp. CPN which serves markets in Texas; NextEra Energy Inc. NEE which operates Florida Power & Light, and Princeton, New Jersey-based NRG Yield Inc. NYLD. In Europe the team recommended France-based GDF Suez GDSZF, soon change its name to "Engie," the british multi-national Centrica PLC CPYYY and Portugal-based EDP Renovaveis SA EDPR In Asia, utilities favored by Morgan Stanley included Tokyo Gas Co. TKGSY, Power Grid Corp. POWERGRID of India, and Korea Electric Power Corp. KEP, as well as Indonesia's Perusahaan Gas Negara PGAS Rounding out the list were Brasil's CPFL Energia S.A. CPL and Australia's Duet Group DUETF. In Australia, Morgan Stanley said the Queensland government will delay electricity deregulation by 12 months. In Europe, Italy's Enel recently announced a restructuring of its operations in Latin America. In India, a government push will increase coal production to a compounded annual growth rate of 10 percent over the coming five years, Morgan Stanley said.