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S&P Global Equity downgrades DTE, Duke, NextEra on valuation

S&P Global Equity Research on July 26 downgradedDTE Energy Co.,Duke Energy Corp. andNextEra Energy Inc.to "sell" from "hold," finding the companies' sharesovervalued. Price targets for each company were increased on higher peervaluations.

S&P Global Equity lifted DTE's 12-month target price by$9 to $93 and its 2016 EPS estimate by 9 cents to $5.02, adding that it sees regulatedinvestments driving future EPS growth. The company on July 26 second-quarter EPS of 98cents, higher than S&P Global Equity's estimate of 94 cents and the 89cents Capital IQ consensus estimate.

In maintaining its 2016 EPS estimate of $4.61 and liftingits price target to $81 from $77, S&P Global Equity said it expects DukeEnergy to report second-quarter EPS of $1.00. "We think higher customergrowth in the Southeast will be partly offset by lackluster industrial growthin the Midwest," analyst Christopher Muir wrote.

Duke Energy is scheduled to report second-quarter results Aug.4.

S&P Global Equity raised NextEra Energy's price targetto by $9 to $123, noting that it sees "strong capital investmentplans" driving future regulated earnings.

S&P Global MarketIntelligence and S&P Global Equity Research are owned by S&P Global Inc.