UPDATE: Jefferies Downgrades UNS Energy on Regulatory Uncertainty
In a report published Thursday, Jefferies analyst Paul B. Fremont downgraded the rating on UNS Energy (NYSE: UNS) from Buy to Hold, and lowered the price target from $57.00 to $49.50.
In the report, Jefferies noted, “We are downgrading UNS Energy to Hold from Buy based on regulatory uncertainty introduced by the ACC review of retail competition. If the ACC adopts retail competition, the future earnings of Arizona regulated electric companies would depend on commodity prices for gas and power, the length of the transition period and the regulatory treatment of stranded cost. Investors should remain on the sideline until these issues are resolved.”
UNS Energy closed on Wednesday at $45.68.
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