Deutsche Bank Downgrades ITC Holdings (ITC) to Hold

Deutsche Bank downgraded ITC Holdings (NYSE: ITC) from Buy to Hold with a price target of $38 (unchanged).

Analyst Jonathan Arnold said, "ITC is up over 12% in two weeks, leading the utility rally and leaving little headroom for value-conscious investors. Recent gains follow FERC not taking up cap structure in the MISO case, but this never seemed a major risk to us. Close to $40 we see ITC ahead of itself on risk/reward around ROE, particularly with mark-to-market of FERC’s methodology pointing to 10.3% vs. the 11% we model for ITC. We acknowledge possible REIT upside and capex potential from the Lake Erie Connector, but neither seems likely to play out near-term. Given superior growth year-end can be a good time to hold ITC as valuations roll forward; at these levels though we're more inclined to step aside."

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 $39.61 yesterday.

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