UPDATE: Citigroup Downgrades Public Service Enterprise Group to Neutral on Valuation
Citigroup reduced its rating on Public Service Enterprise Group (NYSE: PEG) from Buy to Neutral as it maintained its price target at $33.
Citigroup noted, "At the current price, PEG shares have essentially hit our target price of $33. With a dividend yield of 4.3%, the shares still have a positive expected twelve month total return. Our target price is unchanged at $33/share, based on a 8.0x Open EBITDA merchant generation multiple and a 14.6x regulated P/E multiple. Also, we project EPS lower than Street consensus despite our inclusion of healthy transmission line growth."
Public Service Enterprise Group closed at $32.94 on Wednesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.