Guggenheim Securities LLC on Sept. 10 downgraded NiSource Inc. and New Jersey Resources Corp. to "neutral" from "buy" based on valuation.
"These are textbook valuation downgrades as fundamentals, core [operations] and [long term] growth outlook remains solid and intact, but can't see further catalysts to lend to incremental re-rating in the [near term], Guggenheim Analyst Shahriar Pourreza wrote. [We] don't see further [near term] catalysts that would drive earnings higher to warrant a higher multiple re-rating that outpaces our other Buy calls."
Guggenheim's price target for NiSource is at $28, and New Jersey Resources is $49. NiSource shares closed the Sept. 10 session at $27.62, and New Jersey Resources shares closed at $46.05.