UPDATE: Morgan Stanley Initiates Coverage on ITC Holdings as Growth Continues, ROE Risk Subsides
In a report published Monday, Morgan Stanley analyst Rajeev Lalwani initiated coverage on ITC Holdings Corp. (NYSE: ITC) with an Overweight rating and $105.00 price target.
In the report, Morgan Stanley noted, “ITC shares trade in-line with peers, but warrant a large premium as we forecast 5-year EPS growth to be 2-3x that of peers. We also expect concerns over lower ROEs to subside as rates rise and expect investors to favor its superior returns, supportive regulatory framework, and high dividend growth.”
ITC Holdings Corp. closed on Friday at $93.13.
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