Utility sector to attract growth investors in 2025, Guggenheim says

CMS Energy

23/01/2025 13:02

** Guggenheim expects growth to become more of an investment
driver for the utility sector in 2025 
    ** Brokerage sees the sector outperforming broad markets as
more nontraditional investors step in for exposure into trends
such as power demand/datacenters, Trump’s energy revival,
electrification and onshoring with domestic manufacturing
    ** Historically, utility was not viewed by investors as  a
value sector or a growth sector, but this dynamic has changed,
Guggenheim says
    ** Brokerage upgrades American Electric Power  AEP.O , DTE
Energy  DTE.N , Evergy  EVRG.O , Exelon  EXC.O , Idacorp  IDA.N 
and Northwestern Energy  NWE.O  to "buy" from "neutral"
    ** Downgrades CenterPoint Energy  CNP.N , CMS Energy
 CMS.N , Edison International  EIX.N  and Southern Co  SO.N  to
"neutral" from "buy"
    Guggenheim changes PT on the following companies:
 Company                New PT      Old PT      Upside/dow
                                                nside to
                                                stock's
                                                last close
 American Electric      $101        $86         3.6%
 Power  AEP.O                                   
 CMS Energy  CMS.N      $69         $77         3.6%
 Consolidated Edison    $92         $99         1.4%
  ED.N                                          
 Edison International   $60         $91         3%
  EIX.N                                         
 Exelon  EXC.O          $44         $39         12.2%
 Idacorp  IDA.N         $121        $100        12.3%
 Evergy  EVRG.O         $71         $56         13%
 Southern Co  SO.N      $93         $97         12.7%
 

 (Reporting by Pooja Menon in Bengaluru)
 ((Pooja.Menon@thomsonreuters.com;))