UPDATE: J.P. Morgan Downgrades Black Hills Corp. to Neutral, Reiterates $50 PT Ahead of Anticipated Decrease in Momentum

In a report published Tuesday, J.P. Morgan analyst Christopher Turnure downgraded the rating on

from Overweight to Neutral, but reiterated the $50.00 price target. In the report, J.P. Morgan noted, “We now see potential E&P development upside and other utility and IPP growth as priced into BKH shares. This week's analyst day may introduce modestly positive information including the results of the IPP's bid for a new wind development and the ultimate value of the undeveloped Piceance reserves may prove meaningfully higher than what we currently assume in our price target. However Black Hills shares have risen significantly since September 2012 primarily on E&P reserve speculation as well as a well-managed monetization of existing reserves last year, future utility generation growth opportunities and to a lesser degree SMID-cap outperformance, in our opinion. We feel momentum is more likely than not to fade over coming months and are downgrading to Neutral.” Black Hills Corp. closed on Monday at $49.86.