UPDATE: Brean Capital Downgrades Northeast Utilities System to Hold on Valuation

In a report published Tuesday, Brean Capital analyst Michael Gaugler downgraded the rating on

from Buy to Hold. In the report, Brean Capital noted, “We are downgrading our rating on the shares of Northeast Utilities to Hold from Buy, based on valuation. The shares are now trading above our $56 target price, and we consider them fully valued at current levels. That said, we continue to see significant earnings growth in Northeast Utilities' future, and we recommend investors hold existing positions to capture what we expect to be incremental capital gains to those already achieved since our initial Buy rating, driven by projects such as Access Northeast and Northern Pass.” Northeast Utilities System closed on Monday at $56.15.