Wunderlich Securities Reiterates Hold on Northeast Utilities

Wunderlich Securities reiterated its Hold rating on Northeast Utilities NU. In a research report published today, Wunderlich commented on a draft decision on the company's Yankee Gas subsidiary, which appears to reduce rates for the next 12 months by $5 million. In the report, Wunderlich states, "Hold-rated Northeast Utilities (NU) received a draft decision in its pending gas rate case in Connecticut for its Yankee Gas subsidiary. The proposed decision appears to reduce rates in the 12 months beginning in July by $5 million. This is offset by about $5 million of lower depreciation. The draft decision imputes $3.5 million of merger synergies from the proposed merger of NU and NSTAR (NST-NR). Overall, the draft decision is worse than expected. A final decision is expected on June 22. Separately, the New Hampshire State Senate yesterday re-referred the bill proposing limitations on the use of eminent domain; this effectively kills the legislation for the current session." At the moment, Wunderlich has a price target of $37 set on the company's stock. On Thursday, Northeast Utilities lost 0.03% to close the day at $34.89.