Deutsche Bank Upgrades Public Service Enterprise Group Inc. (PEG) to Buy

Deutsche Bank upgraded Public Service Enterprise Group Inc. (NYSE: PEG) from Hold to Buy with a price target of $48 (unchanged).

Analyst Jonathan Arnold said, "We view PEG’s as a better-than-average utility and merchant generation hybrid which now looks better placed than many peers ahead of corporate tax reform given an under-levered balance sheet and the related substantial positive earnings power coming from outside the regulated utility. While this was certainly not the most fashionable profile in 2016, we believe it is much better suited to the potential scenario facing the sector in 2017. In the broader context of our recommended list we are reiterating our Buy on EXC (which has a broadly similar in profile to PEG) but downgrading FE where significant parent leverage, limited cushion on credit metrics and limited/dwindling non-utility earnings. Other potential sources of upside for PEG include incremental value for its merchant nuclear given the possibility of NJ following NY and IL in seeking to ensure long-term sustainability of nuclear assets and the more recent news that the incoming Trump administration may be considering nuclear-friendly policy changes."

For an analyst ratings summary and ratings history on Public Service Enterprise Group Inc. click here. For more ratings news on Public Service Enterprise Group Inc. click here.

Shares of Public Service Enterprise Group Inc. closed at $43.67 yesterday.

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