DA Davidson Upgrades ITC Holdings (ITC) to Buy; Recent Pressure on Shares Creates Attractive Entry Point
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Price: $45.50 --0%
Rating Summary:
5 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
5 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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DA Davidson upgraded ITC Holdings (NYSE: ITC) from Neutral to Buy, maintains price target of $80.00.
DA analyst says, "While we acknowledge that recent rate decisions by state regulators have shown a general decline in allowed ROEs, this trend appears unlikely to impact the incentive-based returns accorded to ITC. Our confidence stems from the facts that: 1) ITC is not one of the named parties in the filing before the FERC and would not be directly impacted by an adverse decision (assuming the challenge is not dismissed outright by FERC, which we see as a likely outcome); 2) the ongoing economic uncertainty has not swayed FERC from continuing to express strong support for regional transmission development (particularly in the Midwest, where ITC’s operations are focused); and 3) ITC’s formula-based rate structure allows it to recover expenses and add new projects to its rate base each year outside the rate case process, where ROEs would typically be addressed."
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 $70.45 yesterday.
DA analyst says, "While we acknowledge that recent rate decisions by state regulators have shown a general decline in allowed ROEs, this trend appears unlikely to impact the incentive-based returns accorded to ITC. Our confidence stems from the facts that: 1) ITC is not one of the named parties in the filing before the FERC and would not be directly impacted by an adverse decision (assuming the challenge is not dismissed outright by FERC, which we see as a likely outcome); 2) the ongoing economic uncertainty has not swayed FERC from continuing to express strong support for regional transmission development (particularly in the Midwest, where ITC’s operations are focused); and 3) ITC’s formula-based rate structure allows it to recover expenses and add new projects to its rate base each year outside the rate case process, where ROEs would typically be addressed."
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 $70.45 yesterday.
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