Utilities Slightly Lower as Morgan Stanley Boosts Rating -- Utilities Roundup
Shares of power-plant operators fell slightly as traders rushed into safe havens.
Analysts at brokerage Morgan Stanley boosted their rating on the utilities sector, saying it was one sector where higher rates have been priced in. The utilities sector started retreating in anticipation of higher Treasury yields in mid-2017, so the current rise may not affect the outlook for share prices as much as in other sectors, according to the Morgan Stanley analysts. "We are not believers in the sustainability in the rapid ascent of yields and think that some retracement of recent rate moves, or just a slowing in the ascent, will favor utilities," the analysts wrote in a note to clients.
Rob Curran, email@example.com
(END) Dow Jones Newswires
February 05, 2018 17:07 ET (22:07 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.