Deutsche Bank Upgrades ITC Holdings (ITC) to Buy; Unique Transmission Growth Play Now at Better Value; ETR Deal Offers Potential Upside

Deutsche Bank upgraded ITC Holdings (NYSE: ITC) from Hold to Buy, price target raised from $73 to $79.

Deutsche analyst says, "ITC has underperformed peers by close to 3% since the start of December and by close to 11% since the start of October. While there have been fundamental reasons for this underperformance (heightened attention on FERC transmission ROE risk and potential concerns/uncertainty surrounding the recently announced transaction with ETR), we believe the stock is now pricing in relatively negative outcomes on these fronts and see value at current levels -- ITC is trading at a modest 2% premium to peers on 2014 EPS despite projections for EPS growth of 12% in that year vs. 5% for the average regulated utility. In addition, while our current price target is based on our standalone forecast for ITC, we believe the recently announced deal with ETR could offer upside, especially longer term, if the companies can secure approval to move forward."

For an analyst ratings summary and ratings history on ITC Holdings click here. For more ratings news on ITC Holdings click here.

Shares of ITC Holdings closed at $71.17 yesterday.

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