UPDATE: ISI Group Upgrades Public Service Enterprise Group to Hold, Raises PT

In a report published Friday, ISI Group upgraded its rating on Public Service Enterprise Group PEG from Sell to Hold, and raised its price target from $29.50 to $31.00. ISI Group noted, “Since we downgraded PEG on 8/29, the stock has sold-off by 6.3% and is now within 2% of our prior target of $29.50/share. At the same time, forward natural gas and power prices have improved (2014 NYMEX gas is up 8.1% and 2014 PJM West ATC power prices are up 8.7%). Current forward curves now support a valuation of ~$31 / share. While we think other stocks in the diversified utility sector are cheaper and represent a better risk /reward, PEG is no longer, from our perspective, overvalued.” Public Service Enterprise Group closed on Thursday at $29.95.