KeyBanc expects utilities to continue positive momentum in 2024

NorthWestern Energy

04/01/2024 15:39

** Brokerage KeyBanc Capital Markets sees utilities sector
continuing rebound this year after overall underperformance in
2023 
    ** "We think the sector is relatively inexpensive, offers an
attractive 4% dividend yield and growth, and should benefit from
abating inflation, lessening bill pressures and interest rate
stability," says brokerage
    ** Expects regulatory risk to moderate this year in most
states after unfavorable outcomes in several states, such as
Illinois, last year
    ** KeyBanc highlights utilities with high growth and
constructive regulations as its picks for the year, including
WEC Energy Group  WEC.N , Xcel Energy  XEL.O , DTE Energy
 DTE.N , CenterPoint Energy  CNP.N  and CMS Energy  CMS.N 
    
    Company      New PT   Old PT   New Rating    Old Rating
  Consolidated      -       -     Sector weight  Underweight
 Edison  ED.N                                    
 Northwestern       -       -     Sector weight  Overweight
      NWE.O                                      
   CMS Energy      $65     $60          -             -
     CMS.N                                       
  CenterPoint      $31     $29          -             -
 Energy  CNP.N                                   
   DTE Energy     $117     $106         -             -
     DTE.N                                       
  Duke Energy     $107     $106         -             -
     DUK.N                                       
   WEC Energy      $95     $94          -             -
 Group  WEC.N                                    
  XCEL Energy      $68     $62          -             -
     XEL.O                                       
     

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com))