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PSEG +2% as Morgan Stanley upgrades

Published 09/21/2017, 03:58 PM
Updated 09/21/2017, 03:58 PM
© Reuters.  PSEG +2% as Morgan Stanley upgrades
  • Public Service Enterprise (PEG +2.2%) is higher after Morgan Stanley (NYSE:MS) upgrades shares to Overweight from Equal Weight with a $53 price target, believing the power company's risk-reward profile is "skewed heavily to the upside" given the stock's YTD underperformance vs. peers and several constructive regulatory initiatives that are pending.
  • Stanley sees PEG as a well-run company with a high growth utility and quality merchant power business, and best-in-class 9% utility growth, supported by merchant free cash flow and a robust infrastructure investment plan.
  • The firm thinks PEG's current stock price reflects very limited value for power despite its strong investment grade credit metrics, which is at an unchanged 25% free cash flow yield.
  • Now read: A Utility Yielding 3%+ With An Appetite For Growth


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