Connecticut Water downgraded to Sell from Neutral at UBS
UBS analyst Daniel Ford downgraded Connecticut Water Service to Sell while raising his price target for the shares to $66 from $64. The analyst sees the stock's risk/reward as skewed to the downside. Connecticut Water is currently trading at a 1.5% discount to the $70 acquisition price with the deal still lacking shareholder and regulatory approvals, Ford tells investors in a research note. He believes a topping bid is unlikely given the 33% premium the offer price represents.Further, the analyst notes that his research suggests around 30% of announced electric utility merger transactions fail to close. Should the deal break, Ford sees the first level of share support at $66, with downside risk as low as $60.