Mizuho analyst Paul Fremont downgraded Allete to Underperform and lowered his price target for the shares to $72 from $74. The company will face additional execution pressure on its remaining business segments following its decision to sell the U.S. Water Services business, Fremont tells investors in a research note. He believes Allete 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. Additionally, Fremont believes the company will miss on the midpoint of its fiscal 2018 guidance due to weak equipment sales.