J.P.Morgan says US utilities to rebound from weak start to 2023

NiSource

01/06/2023 15:49

** J.P.Morgan says U.S. utilities had a weak start to 2023
as Federal Reserve's hawkish stance and heightened financial
uncertainty weighed on the sector 
    ** YTD, U.S. utilities have underperformed S&P 500 index
 .SPX  by ~18%, compared to the sector outperforming by ~20% in
2022 - brokerage  
    ** Sees upside potential of about 8.5% for utilities but
says change in interest rate remains the key concern
    ** U.S. utilities are now undervalued....however, relative
safe haven, robust electrification and green tailwinds support
outlook for the sector - brokerage
    ** Names Amaren Corp  AEE.N , CenterPoint Energy Inc
 CNP.N , WEC Energy Group Inc  WEC.N  and Xcel Energy Inc
 XEL.O  as large-cap regulated electric utilities that are
well-positioned for growth
    ** Says that the cos mentioned above offer "top-tier" 6% to
8% dividend growth
    ** JPM selects CMS Energy  CMS.N  and NiSource Inc  NI.N  as
its top picks, citing "solid Michigan regulatory track record"
and "declining regulatory risk", respectively

 (Reporting by Arshreet Singh)
 ((Twitter: https://twitter.com/Arshreets))