Scotiabank raises PTs on US utility firms

Alliant Energy

20/08/2024 13:21

** Scotiabank raises price targets on several U.S. utility
firms as it expects the sector to benefit from a "combination of
bullish considerations"
    ** The PT changes reflect factors like "falling interest
rates, a dovish tilt from global central banks, rapidly
accelerating load growth outlooks, rising concerns of slowing
macroeconomic growth or a potential recession," says Scotiabank
    ** Utilities are often termed as "defensive stocks" as
consumers will still need to use their services regardless of
the economic situation
    ** "Fundamental growth outlooks are robust, and upcoming
capital expenditure and demand forecast updates should be
bullish catalysts over the next 3-6 months," says brokerage
    ** CMS Energy  CMS.N , WEC Energy  WEC.N , DTE Energy
 DTE.N , Southern Co  SO.N , NextEra Energy  NEE.N , Alliant
Energy  LNT.O  and American Electric Power  AEP.O  are among the
brokerage's top picks
    
    Here are the PT changes made by Scotiabank:
    
 Company              New PT   Old PT   Premium/Discount
                                        to last close
 Alliant Energy       $64      $58      ~11% premium
 American Electric    $108     $99      10.7% premium
 Power                                  
 CMS Energy           $75      $66      12.7% premium
 Consolidated Edison  $90      $85      10% discount
 Dominion Energy      $58      $48      3% premium
 DTE Energy           $137     $120     11% premium
 Eversource Energy    $66      $57      0.2% premium
 WEC Energy           $103     $90      14% premium
 Southern Co          $96      $87      10% premium
 Duke Energy          $113     $104     0.2% premium
 NextEra              $92      $73      ~16 premium
             

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com;))