ITC Holdings Rated A Hold At Wunderlich (ITC)

Wunderlich Securities was impressed with ITC Holdings Corp. (NYSE: ITC) after the company strong EPS numbers yesterday which beat the Street and Wunderlich's own estimates. However, Wunderlich is reiterating a Hold rating and has a price target of $55, below the current share price.

In the report, Wunderlich goes on to say, "...ITC Holdings (ITC) reported 2Q EPS of $0.71 versus $0.61 a year ago (and our estimate of $0.65). The better results were driven by higher revenues, lower non-operating expenses, and a slightly lower tax rate. ITC increased its 2010 EPS guidance to $2.70-$2.75 from $2.60-$2.70 previously. The company also increased its capital spending budget for 2010 to a range of $420mm-$460mm, up from $405mm-$460mm. We are increasing our EPS estimates for ITC to $2.75 and $3.40 for 2010 and 2011, respectively. Our 2012 estimate of $4.10 is unchanged. Though we are fond of the ITC story and record of execution, we maintain our Hold rating, looking for a more attractive entry point."

Shares of ITC are trading $56.73, falling $1.17 on the day.