Deutsche Bank Downgrades Portland General Electric Company (POR) to Hold

Deutsche Bank downgraded Portland General Electric Company (NYSE: POR) from Buy to Hold with a price target of $38.00 (from $37.00). The firm cited valuation, slower catalyst year in 2015.

Analyst Jonathan Arnold comments, "After a year of solid execution on the earnings and construction front, we see a more balanced risk/reward in POR. We see 2015 as “transitional” year between the existing rate base growth plans (which drive earnings growth through 2016) and potential future rate base growth (from the need for new capacity in the 2020 time frame). With POR’s integrated resource plan (IRP) not expected until 2016, we see limited catalysts in 2015 to bring clarity on the next wave of potential growth. We also view a share buyback as unlikely despite our expectation for POR to be free cash flow positive in 2016, as we expect management to instead position the utility to support potential future growth without the need for another sizable equity issuance. Given the limited upside to our $38 price target and our more cautious view on the regulated utility group, we are downgrading POR to Hold from Buy."

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 $37.68 yesterday.

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