UPDATE: UBS Downgrades Duke Energy (DUK) to Neutral

(Updated - January 5, 2015 10:33 AM EST)

UBS downgraded Duke Energy (NYSE: DUK) from Buy to Neutral with a price target of $90 (unchanged).

Analyst Julien Dumoulin-Smith said, "We are reducing our estimates and downgrading to Neutral with DUK recently hitting 52-week highs, utilities outperforming the S&P 500 by 14% in 2014, and DUK having outperformed the XLU utilities ETF by 6% since the summer. We continue to be concerned that fund rotation out of utilities in 2015 after such strong performance will hit the slower growing large cap names harder than more nimble small/mid-cap utilities (see our 12/19 note " The 'SMID Bid'.) We are reducing EPS estimates $0.08 to reflect lower results from Saudi subsidiary NMC as a result of its correlation to falling Brent crude, and see Duke near low end of anticipated '15 guidance range of $4.70-4.85."

For an analyst ratings summary and ratings history on Duke Energy click here. For more ratings news on Duke Energy click here.

Shares of Duke Energy closed at $84.05 yesterday.

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