UPDATE: Deutsche Bank Downgrades ITC Holdings Corp. to Hold, Raises PT on Strong Performance, Unresolved Overhangs

In a report published Wednesday, Deutsche Bank analyst Jonathan Arnold downgraded the rating on ITC Holdings Corp. ITC from Buy to Hold, but raised the price target from $88.00 to $93.00. In the report, Arnold noted, “Regulateds continue to stretch the valuation envelope trading at 17x 2013 earnings and pushing towards multi-decade highs. We see the current macro environment – fundamental weakness amid strong liquidity fueled by global central bank intervention – as the key factors at play, but are reluctant to chase valuations much higher. With most stocks priced for perfection we stay highly selective, favoring rock-solid execution (CMS) or favorable risk/reward ideally with potential catalysts (EIX, PCG, POR). Downgrading ITC to Hold after strong YTD performance in the face of still tangible unresolved overhangs.” ITC Holdings Corp. closed on Tuesday at $92.01.