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UPDATE: Deutsche Bank Raises PT on Northeast Utilities on Reasons for Caution

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In a report published Wednesday, Deutsche Bank analyst Jonathan Arnold reiterated a Hold rating on Northeast Utilities System (NYSE: NU), and raised the price target from $43.00 to $43.50.

In the report, Deutsche Bank noted, “With utilities set to finish the year last among sectors for the second straight year, it is surely tempting to argue for a rebound in 2014. But with the Fed exit still in front of us and a continuing overhang from challenging power business fundamentals, investors have plenty of reason to proceed with caution. Compared to April when Fed taper talk began, utilities are at least much better relative value (P/E parity vs. ~20% premium) and closer to their lows in terms of mutual fund positioning. A market growth stall might be utilities' best hope for a winning 2014; in the meantime, we continue to counsel selectivity, mostly favoring better growth or value catalysts over pure defensiveness and yield.”

Northeast Utilities System closed on Tuesday at $41.05.

Latest Ratings for NU

DateFirmActionFromTo
Feb 2015Deutsche BankMaintainsHold
Feb 2015Credit SuisseDowngradesOutperformNeutral
Dec 2014Brean CapitalDowngradesBuyHold

View More Analyst Ratings for NU
View the Latest Analyst Ratings

 

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Posted-In: Deutsche Bank Jonathan ArnoldAnalyst Color Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
URIVertical ResearchInitiates Coverage On310.0
PCARVertical ResearchInitiates Coverage On95.0
DEVertical ResearchInitiates Coverage On345.0
CNHIVertical ResearchInitiates Coverage On16.0
AGCOVertical ResearchInitiates Coverage On119.0
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