UPDATE: Goldman Sachs Downgrades Portland General Electric Company (POR) to Sell

Goldman Sachs downgraded Portland General Electric Company (NYSE: POR) from Neutral to Sell with a price target of $38.00 (from $39.00). Michael Lapides called the downgrade a "relative valuation call."

"We downgrade POR to Sell from Neutral, a relative valuation call in our view, given (1) expected near-term headwinds from Carty cost over-runs and litigation surrounding recovery of surety proceeds as discussed during 1Q16 earnings, (2) valuation, where POR has historically traded at a 0.5x-1.0x discount to regulated peers, and (3) our estimates for 2017/18 remain below consensus by 1%/3%, respectively. We now value POR at 16.0x our 2017E EPS estimate (vs. 16.5x) and apply a 0.5x discount versus an in-line multiple to derive our 12-month price target of $38. Total return potential of (6%) compares to (1%) for regulated utilities," said Lapides.

For an analyst ratings summary and ratings history on Portland General Electric Company click here. For more ratings news on Portland General Electric Company click here.

Shares of Portland General Electric Company closed at $42.18 yesterday.

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