UPDATE: Wellington Shields Downgrades UNS Energy to Hold on Valuation

Wellington Shields downgraded UNS Energy

from Buy to Hold and lowered the price target from $48.50 to $47.25. Wellington Shields said, "Tucson-based UNS Energy reported 4Q & 2012 results of $0.18/shr and $2.20, respectively---in line with our estimates and slightly ahead of consensus. 2012 was down from $2.75/shr in 2011 because it was the last year of a four-year rate freeze and much accumulated investment was not in rate base. Also, the decline reflects a $(0.12)/shr hit from non-recurring items in 2012 vs. an $0.11 settlement gain in 2011. … We value UNS at 15.2x our 2014E of $3.10/shr for a new price target of $47.25/shr, down $(1.25) on a combination of market conditions and moving valuation to an undiscounted 2014E." UNS Energy closed at $46.54 on Tuesday.