Scotiabank 'cautious' on US utility stocks following Trump victory

Alliant Energy

12/12/2024 13:23

** Scotiabank says it is "increasingly cautious" and does
not see an attractive near-term outlook for U.S. utility stocks
    ** "Macro investor sentiment has been unambiguously risk-on
since the U.S. elections ended with a swift and decisive Trump
victory and Republican sweep last month" - brokerage 
    ** During Trump's first term, in 2017, utilities fared
worst, with 9% rise vs 16% growth in the broader market -
Scotiabank
    ** However, the brokerage says theme of 2025 will be the
robust outlook for electricity demand 
    ** Downgrades Eversource Energy  ES.N  to "sector
underperform", American Electric Power  AEP.O  and Alliant
Energy  LNT.O  to "sector perform"
    ** Upgrades FirstEnergy  FE.N  and CenterPoint Energy
 CNP.N  to "sector outperform", Consolidated Edison  ED.N  to
"sector perform"

    Brokerage also changes PT on the following firms: 
 Company             New PT      Old PT      Upside/downside
                                             to stock's last
                                             close
 Alliant Energy      $67         $64         11%
  LNT.O                                      
 CenterPoint Energy  $35         $30         11%
  CNP.N                                      
 Consolidated        $100        $90         8%
 Edison  ED.N                                
 Eversource Energy   $56         $66         7% downside
  ES.N                                       
 FirstEnergy  FE.N   $50         $45         25%
                                             
 CMS Energy  CMS.N   $77         $75         15%
 Dominion Energy     $61         $58         12%
  D.N                                        
 DTE Energy          $147        $137        21%
  DTE.N                                      
 Duke Energy         $120        $113        9%
  DUK.N                                      
 Exelon  EXC.O       $42         $40         14%
 Southern Co  SO.N   $98         $96         18%
 
 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))