UPDATE: JP Morgan Initiates Coverage on Hawaiian Electric Industries at Neutral on Clear Growth Path

In a report published on Friday, JP Morgan analyst Christopher Turnure initiated coverage on

(HE) with a Neutral rating and a price target of $27.00. In the report, JP Morgan noted, "Hawaiian is on the cusp of a major utility capex growth cycle driven primarily by landmark state legislation to reduce dependence on imported oil as a fuel for power generation. The Hawaii Clean Energy Agreement became law in 2008 and created a multi-decade long initiative to change the electricity generation profile of the state based on 1) expanded renewable generation and 2) heavy use of energy efficiency. HEI will benefit from direct and indirect investments in power plants and infrastructure, and a comprehensive decoupling mechanism helps protect it from the negative impact of energy efficiency." Hawaiian Electric Industries is currently trading at $26.49.