UPDATE: Morgan Stanley Reiterates on Northeast Utilities System Following Analyst Conference

In a report published Friday, Morgan Stanley analyst Rajeev Lalwani reiterated an Equal-Weight rating on Northeast Utilities System NU, and raised the price target from $42.00 to $43.00. In the report, Morgan Stanley noted, “At yesterday's analyst conference NU management continued to support an above-average EPS growth outlook and highlighted its execution on merger synergies and investment plans. Despite applying a premium P/E and forecasting EPS at the high-end of their guidance, we see the stock as fully valued particularly given some uncertainty around Northern Pass and transmission ROEs. Accordingly we remain comfortable with our Equal-weight rating.” Northeast Utilities System closed on Thursday at $42.87.