UPDATE: Bank of America Downgrades Entergy to Underperform on Regulatory Issues

Bank of America reduced its rating on Entergy

from Neutral to Underperform and lowered its price target from $74 to $70. Bank of America commented, "We are downgrading Entergy to U/P due to the following: 1) ETR will likely be in up to 5 rate cases in 2013 with allowed ROE risk; 2) integration into MISO becoming difficult; 3) Still need to file ITC deal, will be contesting in 2013; and 4) Nuclear overhangs continue with recent NRC action. ETR currently trades about in-line with integrated peers and we believe there should be a discount." Entergy closed at $71.11 on Tuesday.