- Allete (ALE -3.1%) turns sharply lower from its highest levels in two months after Mizuho downgrades shares to Underperform and trims its price target to $72 from $74, saying the company will face additional execution pressure on its remaining business segments following its decision to sell its U.S. Water Services business.
- Mizuho analyst Paul Fremont believes ALE will need to "fill the earnings gap" with investments at the Ace segment and/or the regulated subsidiary in order to maintain its 5%-7% annual growth guidance.
- The firm also thinks ALE will miss on the midpoint of its fiscal 2018 guidance due to weak equipment sales.