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Fly News Breaks for January 8, 2020
NJR, ED, AEP, AVA, SR, POR, ALE, PPL, OGS, NWE, HE, CPK, AEE, EXC
Jan 8, 2020 | 08:45 EDT
Guggenheim analyst Shahriar Pourreza noted that many of the traditional regulated utilities seen as bond proxies were relative outperformers in 2019 and he expects the same dynamics to carry into 2020, but with a "continued bend" towards cyclical energy/power levered names, which he predicts will be top quartile performers. In issuing his 2020 outlook for the Utility sector, Pourreza initiated coverage of Ameren (AEE) with a Buy rating and started coverage of Chesapeake Utilities (CPK), Hawaiian Electric (HE), NorthWestern (NWE) and ONE Gas (OGS), all with Neutral ratings. He also upgraded PPL Corp. (PPL) and Allete (ALE), each to Buy from Neutral, while downgrading Portland General Electric (POR), Spire (SR), Avista (AVA), American Electric (AEP), Consolidated Edison (ED) and New Jersey Resources (NJR) all to Sell from Neutral. Pourreza named Exelon (EXC) as his Best Idea in 2020 as he believes the market has "an unwarranted discount" and assigns a low single digit value to ExGen, which does not factor in upside from potential legislation in Illinois or Pennsylvania or the recently-ordered PJM capacity market reforms. In addition to the near-term catalysts, he also cites Exelon's valuation.
News For EXC;AEE;CPK;HE;NWE;OGS;PPL;ALE;POR;SR;AVA;AEP;ED;NJR From the Last 2 Days
EXC
Oct 26, 2020 | 09:52 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. SAP (SAP) downgraded to Neutral from Overweight at JPMorgan and to Neutral from Outperform at Exane BNP Paribas. 2. KeyCorp (KEY) downgraded to Neutral from Outperform at Wedbush with analyst Peter Winter saying part of the investment thesis has played out as KeyCorp has closed the valuation gap and its credit quality has held in relative to peers. 3. Boot Barn (BOOT) downgraded to Hold from Buy at Craig-Hallum with analyst Jeremy Hamblin saying with the majority of stores returning to pre-pandemic operating hours and promotional levels that appear to be slightly elevated year-over-year, Hamblin sees less opportunity to materially raise his 2021 estimates. 4. Cinemark (CNK) and Marcus (MCS) downgraded to Market Perform from Outperform at Barrington. 5. Exelon (EXC) downgraded to Neutral from Buy at Guggenheim with analyst Shahriar Pourreza saying policy in Illinois has "sputtered" and uncertainty has "created a value trap" given the lack of clarity. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
EXC
Oct 26, 2020 | 06:05 EDT
Guggenheim analyst Shahriar Pourreza downgraded Exelon to Neutral from Buy with a price target of $42, down from $46.