UPDATE: Deutsche Bank Upgrades Northeast Utilities to Buy; Better Positioned Post Merger
Deutsche Bank raises its rating on Northeast Utilities (NYSE: NU) from Hold to Buy and raises its price target from $36.50 to $39.
Deutsche Bank notes, "We upgrade NU to Buy from Hold and raise our PT to $39 from $36.50 as we introduce our new outlook following NU's recent merger with NSTAR. We see an attractive entry point into a stock that offers above average LT EPS and DPS growth, below average regulatory risk (no rate cases until 2014), and no need for new equity in the near-term. Despite being a larger and arguably better positioned company post-merger, NU is currently trading at a 4% discount to peers. With this report we transfer lead coverage to Caroline Bone."
NU closed at $36.21 on Tuesday.
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