By Senad Karaahmetovic
A JPMorgan analyst made several rating changes across the bank’s coverage of North American Utilities.
The analyst upgraded Spire (NYSE:) to Overweight from Neutral as he believes the company is better equipped to “more consistently press its positions in the MO rate case.” Moreover, the analyst is positive on settlement prospects following recent Staff testimony and settlement overall as a viable path forward.
“The risk/reward outlook at SR’s current -11% 2024 P/E discount to LDC peers appears compelling given this potential in the ongoing MO rate case,” the analyst said in a client note.
Sunderland also upgraded American Water Works Company (NYSE:) to Neutral from Underweight on more favorable water valuations. The upgrade move also comes “in recognition of water’s differentiated customer rate position as elevated commodity prices flow through electric and gas bills.” The analyst also notes easing near-term regulatory concerns.
Elsewhere, JPMorgan raised Canada-based Emera (TSX:)to Neutral from Underweight, while New Jersey Resources (NYSE:) is downgraded to Underweight from Neutral on the risk of negative revisions.