UPDATE: Ladenburg Thalmann Downgrades Cleco to Neutral; Raises PT

In a research report published earlier today, Ladenburg Thalmann has downgraded Cleco Corporation

from Buy to Neutral based on near-term valuation. In the report, Ladenburg Thalmann commented, “We are lowering our rating to NEUTRAL from BUY on Cleco Corp (

). Our revised target price of $41 p/s (previously $40 p/s) is supported by 13.3x our revised 2014 EPS estimate of $2.93 plus an additional $2.00 p/s of cash value based on our preliminary assessment of future excess cash. Following the re-rating of CNL shares (+4.1% year-to-date) we believe current valuation is more reflective of the utility's (Cleco Power) longer-term earnings potential. We see fair value at $41-$42 p/s and with limited near-term upside to our price target objective we now rate CNL shares NEUTRAL.” Cleco is currently trading at $39.35.