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JP Morgan upgrades NiSource; BoFA Merrill Lynch downgrades AES

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JP Morgan upgrades NiSource; BoFA Merrill Lynch downgrades AES

Upgrades

* J.P. Morgan Securities LLC on May 17 upgraded NiSource Inc. to "overweight" from "neutral" given an anticipated improvement to the company's visibility through the second half of 2018.

* Separately, J.P. Morgan on May 10 raised its rating on First Solar Inc. to "overweight" from "neutral." First Solar has "excellent revenue and earnings visibility," although its earnings growth is range-bound by the lack of pricing power in a global commodity market, according to the brokerage.

* CFRA Equity Research on May 9 lifted its opinion on Ameren Corp. shares to "hold" from "sell." Analyst Christopher Muir also raised his 12-month target price by $4 to $58 on higher peer valuations.

* Mizuho Securities USA LLC on May 7 upgraded FirstEnergy Corp. to "buy" from "neutral" based on valuation and the potential for the company to be acquired.

* CFRA on May 4 raised its rating on Consolidated Edison Inc. shares to "sell" from strong sell" on the view that the company will have fewer cost savings going forward.

* Bank of America Merrill Lynch on May 4 upgraded Pinnacle West Capital Corp. to "neutral" from "underperform," citing an attractive valuation and an improved outlook concerning operations and maintenance costs.

* J.P. Morgan on May 3 upgraded TerraForm Power Inc. "overweight" from "neutral" after the company's first-quarter results met expectations.

* Citigroup Inc. on May 1 upgraded Eversource Energy to "neutral" from "sell," saying offshore wind helps support the company's growth story. The brokerage also cited a potential for corporate merger and acquisition as a reason for the upgrade.

Downgrades

* Bank of America Merrill Lynch on May 16 downgraded AES Corp. to "neutral" from "buy" on view that company is now fairly valued.

* J.P. Morgan on May 14 lowered its investment opinion on Ormat Technologies Inc. to "neutral" from "overweight," citing molten lava threat at the Puna Geothermal Venture I in Hawaii.

* Mizuho Securities USA on May 7 downgraded ALLETE Inc. to "neutral" from "buy" and increased its price target to $75.50 from $70.50, citing valuation.

* CFRA downgraded Edison International to "hold" from "buy" but raised the 12-month target price by $2 to $66.

Coverage initiations

* UBS Investment Bank on May 1 started coverage of Hydro One Ltd. with a "sell" rating and a C$19 price target. The firm cited the June 7 Ontario election and the Avista Corp. merger overhang as drivers for the initiation.

* Morgan Stanley resumed coverage of AES Corp. at "equal-weight" and a $13.50 price target on improving cash flow profile, The Fly reported.

Notable reiterations

* Macquarie Capital (USA) Inc. reiterated its "outperform" rating on Avangrid Inc., after its Vineyard Wind LLC joint venture with Copenhagen Infrastructure Partners K/S was selected in the 800-MW offshore wind auction in Massachusetts.

* Wells Fargo Securities LLC on May 1 affirmed Fortis Inc.'s rating at "outperform" and lifted the price target to C$48 from C$45, on higher peer group multiples and higher earnings per share outlook. The brokerage also raised EPS estimates for Fortis, citing "a change in the assumed composition of external financing."