Deutsche Bank Believes Execution is Key for Northeast Utilities System

In a report published Monday, Deutsche Bank analyst Caroline Bone reiterated a Hold rating and $48.00 price target on

. In the report, Deutsche Bank noted, “NU reported a generally in line Q3 and reaffirmed 2014 EPS guidance of $2.60-$2.70, but the company also delayed the estimated in-service date of its $1.4B Northern Pass Transmission line to 2H-18 from 2H-17. While we had expected a postponement into 2018, we had not yet adjusted our model, particularly for a delay into the second half of the year. As a result, we are lowering our 2015 and 2016 estimates by $0.05 each but reiterating our Hold rating. Like many regulated utilities, NU is more than fairly valued at current levels (17.1x 2016E EPS), in our view.” Northeast Utilities System closed on Friday at $50.70.