UPDATE: Wellington Shields Downgrades NV Energy to Hold; Valuation Reflects Recovery
Wellington Shields downgraded NV Energy (NYSE: NVE) from Buy to Hold.
Wellington Shields noted, "While the ongoing NVE story of free cash flow appeals to us, the company's earnings have recovered, its stock largely reflects this, and we downgrade to Hold. … We value NVE at our average multiple of 15.3x our new 2014E of $1.33/shr, or $20.25/shr – up fifty cents from our last published valuation. … Utility stocks are often viewed as yield vehicles. Thus, a rising interest rate environment will put downward pressure on utility stocks, including NV Energy."
NV Energy closed at $19.44 on Friday.
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