Tristan R. Brown
Apr. 21, 2015, 12:39 PM
- Eversource Energy (ES -1.6%) is downgraded to Neutral from Buy with a $53 price target, lowered from $57, at UBS, which reduces its 2017 EPS estimate by $0.11 with the Northern Pass in-service date delayed toward the end of 2018, although the firm still assumes the project is approved and its estimates for 2018 and later are unaffected.
- UBS also reduces its 2017 estimate by an additional $0.04 for the impact of the divestiture of New Hampshire generation, with ~$731M of ratebase earnings at 8.59% return on equity being replaced with debt reduction at 5%.
- To achieve 6%-8% earnings growth through 2019, the firm says it is clear that both Northern Pass and the Access Northeast pipeline are required.
Feb. 13, 2015, 12:59 PM
- Northeast Utilities (NU -2.7%) is downgraded to Neutral from Outperform with a $56 price target at Credit Suisse, following Q4 earnings results that beat estimates but lowered earnings clarity for several months into 2015.
- With NU's updated and extended 6%-8% growth rate, including the Northern Pass Transmission and Access Northeast projects, the firm says its estimates have retrenched modestly, and the timeline to finding confidence that these projects convert into expected earnings now extends over much of 2015.
- Credit Suisse says it likes NU's strategy but prefers other high growth utilities that offer arguably better visibility today.
Jul. 5, 2013, 10:58 AM
May 30, 2013, 11:17 AM
Utilities are getting a bit of a reprieve after taking a beating over the past few days. Option implied volatility has been increasing as investors rotate out of high dividend yield positions in the wake of a rise in treasury yields: AEE +1.7%, D +0.3%, DTE +1.9%, EIX +0.6%, ETR +1.3%, EXC +0.7%, FE +0.9%, NEE +1.7%, PEG +0.8%, PPL +0.5%, SRE +1.3%, TE +0.5%, AEP +0.8%, DUK +0.6%, ED NU +1.6%, PCG +1.2%, SO +0.4%, XEL +1.3%.| May 30, 2013, 11:17 AM | 5 Comments
Jan. 4, 2012, 3:34 PM
The proposed $4.3B merger between Northeast Utilities (NU -1.7%) and Nstar (NST -3.7%) will be reviewed by utility regulators in Connecticut, reversing the state's decision last year not to review the transaction, the Hartford Courant reports. The preliminary decision throws a new barrier in the way of the deal that would create a $17.5B utility, just three months before the deal expires.| Jan. 4, 2012, 3:34 PM