UPDATE: Bank of America Downgrades Westar Energy to Neutral on Flat Sales Growth

Bank of America reduced its rating on Westar Energy WR from Buy to Neutral with a reiterated price objective at $31. Bank of America said, "On 8/8, Westar said it expects flat sales growth in 2012 and higher trending costs at its Wolf Creek nuclear plant. WR reaffirmed guidance of $1.85-2.00 but that includes a benefit from the hot July weather. Although we are raising our 2012E to $1.97 from $1.86 to reflect weather, we are lowering our 2013-14E to $2.04/2.09 from $2.06/2.14 mostly due to flat sales growth and higher O&M. WR stock is trading in line with regulated utility peers on our lower numbers, and we think that a premium valuation is tough to support given ongoing regulatory lag and equity needs." Westar Energy closed at $29.95 on Tuesday.