- Dominion Resources (D -0.4%) is downgraded to Equal Weight from Overweight with a $79 price target, trimmed from $82, at Morgan Stanley, which says shares are fairly valued on a more balanced risk/reward outlook.
- Stanley says the primary drivers its downgrade are anticipated lower sales growth at the VEPCO regulated utility in light of recent data points, and lower commodity prices impacting profitability at the Millstone nuclear plant.
- The firm adds that Dominion and Dominion Midstream Partners (DM +1.5%) are well positioned to benefit in the longer term from secular demand growth for Appalachian gas production, driven by favorable positioning in the Marcellus/Utica region.