Deutsche cautiously optimistic on utilities, sees selective opportunities


"The principle risk [for utilities is] 10-year yields taking another run at 3%," Deutsche's Jonathan Arnold says, in a cautiously upbeat note on the sector.

Arnold notes that "regulated utility total return propositions of 7-8%" look good in risk-adjusted terms when compared with "expected market returns in the ~10% range."

Upgraded: Duke Energy (DUK +0.4%), Portland General Electric (POR +1.5%), and PSEG (PEG +0.6%).

Other Buy-rated names at Deutsche: CMS, ETR, CPN

ETFs - IDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT

See also: Goldman warms to utilities

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Comments (3)
  • rgperrin
    , contributor
    Comments (1538) | Send Message
     
    That's "principal risk," not "principle risk." Poor grammar and usage causes your readers to doubt your competence in other areas as well, for example, financial advice.
    1 Oct 2013, 02:35 PM Reply Like
  • RWMostow
    , contributor
    Comments (1691) | Send Message
     
    RG-

     

    I am under the impression that these "capsules" are written by SA staff, not the author crowd.

     

    I share your frustration with poor grammar and usage.

     

    -rwm
    1 Oct 2013, 04:32 PM Reply Like
  • al roman
    , contributor
    Comments (16581) | Send Message
     
    SA great calls on Arna & Chess P,that has been good spelling,Dang too.Tks
    4 Oct 2013, 08:04 AM Reply Like
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