UPDATE: Credit Suisse Downgrades Northeast Utilities System to Neutral, Lowers PT as Revisiting Later Makes More Sense

In a report published Friday, Credit Suisse analyst Dan Eggers downgraded the rating on Northeast Utilities System NU from Outperform to Neutral, and lowered the price target from $57.00 to $56.00. In the report, Credit Suisse noted, "We have recommended NU shares for some time, attracted by the combination of above group growth and opportunity for conversion of the Northern Pass Transmission (NPT) line (even if delayed) into value; the additional prospects of the $1.0-1.5 BN Access Northeast pipeline project finally got the market's attention and brought a strong rally in the stock. But, with the updated and extended 6-8% growth rate including both NPT and Access Northeast, we see our probability weighted estimates retrenching modestly and the timeline to finding confidence that these projects convert into expected earnings now extending over much of 2015. Facing months until we get clarity and a P/E above other high growth utilities that offer arguably better visibility today, we are lowering our rating on NU to Neutral under our relative recommendation system. We like the NU strategy but think revisiting later makes more sense." Northeast Utilities System closed on Thursday at $52.30.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesAnalyst RatingsCredit SuisseDan Eggers
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!