Utilities winners and losers as the U.S. goes green.
We are cutting our fair value estimate and reaffirming our very high uncertainty and no-moat ratings.
Renewable energy has policy momentum, but gas generation offers reliability.
If interest rates keep heading toward zero, utilities could benefit.
The sector is trading at the largest premium to our fair value estimate since 2017.
We see risks as well as opportunities.
Exceptional buying opportunity if the sector makes a modest correction.
As the utility heads into bankruptcy, we still think shareholders won't be left empty-handed.
We plan to cut our fair value estimate by more than 50%, but we still believe there is positive equity value.
The bankruptcy threat could be an effective strategy that preserves sizable upside.
Our fair value estimate remains, and we are also reaffirming our no-moat rating for the utility.
Global capital investment in renewable energy, smart grid, safety, and reliability provides a long runway of earnings growth potential, though we only see select values today.
We expect the South Carolina Public Service Commission will issue a written order next week, and the acquisition will close shortly thereafter.
Both parties filed their proposed orders with South Carolina regulators, and a decision should be made by Dec. 21.
The latest merger deal appears to have won support from key opponents.
We are reassessing our fire liability valuation, uncertainty rating, and cost of capital assumption for the firm.
We've trimmed our estimates for PG&E and Edison International to reflect possible liabilities.
Utilities continue trading near fair value with only a few high-quality dividend payers trading at attractive prices.
Market skepticism about the deal closing with Dominion is leaving plenty of potential upside.
We expect regulators will allow the utility to recover any large storm expenses, resulting in little effect on shareholders.
The company reached what we consider a fair settlement in Texas and continues toward a constructive conclusion of its rate case in New Mexico.
Utilities investors have buying opportunities but should pick carefully.
Utilities valuations appear to have peaked, but investors should remain cautious.
We think there is a good chance the board might suspend the dividend for at least a few more quarters.
Even the outlook for tightening monetary policies worldwide can't stop utilities from reaching near-record valuations.
National Grid has been able to repurchase shares at value-accretive prices, given the weakness in its stock price during the past two months.
We think shareholders are in a good position despite fallout from the abandonment plan.
We already assumed the plant would close in 2019, so the announcement has no impact on our fair value estimate of the narrow-moat company.
Utilities stocks keep rewarding investors with attractive yields and growth, dispelling the long-held notion that rising interest rates will hurt sector returns.
The utilities yield spread has turned much more bearish after bonds collapsed at the end of the year.
We don't plan any material changes to our forecasts for the utilities we cover.
Utilities' dividend yields still look good, growth is on track, and balance sheets are strong, offering income investors hope that a potential sector collapse would be mild.