Deutsche Bank Downgrades ITC Holdings (ITC) to Hold; Can't Rule Out ROE Risk

Deutsche Bank downgraded ITC Holdings (NYSE: ITC) from Buy to Hold, price target lowered from $76.50 to $73.00.

Deutsche analyst says, "We have revisited our thesis and valuation following a recent challenge at FERC to transmission ROEs in New England. There is no certainty that this challenge will be successful, but we are increasingly concerned that other transmission utilities' authorized ROEs could be challenged and potentially reduced given the low interest rate backdrop that has been further exacerbated by recent Fed actions. We believe it is appropriate to reflect at least some of this risk in our valuation and our new scenario-based price target suggests ITC is fairly valued at current levels."

For more ratings news on ITC Holdings click here and for the rating history of ITC Holdings click here.

Shares of ITC Holdings closed at $73.65 yesterday.

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