UPDATE: Goldman Sachs Downgrades Duke Energy to Neutral on Lower EPS Estimates, Relative Valuation

In a report published Wednesday, Goldman Sachs analyst Michael Lapides downgraded the rating on Duke Energy Corp.

from Buy to Neutral, but reiterated the $72.00 price target. In the report, Lapides noted, “We revise estimates for DUK and, given both lower estimates and relative valuation, downgrade DUK to Neutral from Buy. We lower forecasts for 2013/2014 primarily to reflect (1) rate case assumptions in the Carolinas, (2) higher than previously forecast O&M spending, reflecting increased nuclear and pension costs – partially offsetting merger related cost synergies, and (3) lower expected near-term contributions from DUK's generating assets in Latin America. While we still expect DUK to trade at a premium, relative valuation – compared to other large-cap Regulated Utilities – no longer appears as compelling, especially after recent outperformance relative to the sector index and few major catalysts.” Duke Energy Corp. closed on Tuesday at $72.59.