Wunderlich Securities Reiterates Buy Rating, $85 PT on ITC Holdings

In a company update published Friday, Wunderlich Securities reiterated its Buy rating and $85.00 price target on ITC Holdings

. Wunderlich noted, “We had an opportunity to meet with members of the Federal Energy Regulatory Commission (FERC) yesterday. Though ROEs were highlighted as having some downside risk in the intermediate term, members of the FERC repeatedly suggested the ROE changes were unlikely to be ‘significant' and did not represent any ‘sea change' in FERC policy. FERC appears focused on continuing to advance policies to attract new investment in energy infrastructure, particularly for electricity transmission. The FERC expressed no concern about its longstanding policy of using an operating company's capital structure where the entity has a bond rating and issues its own non-guaranteed debt. Overall, the FERC comments support our Buy rating on ITC Holdings.” ITC Holdings closed yesterday at $72.11.