Macquarie Capital (USA) Inc. on April 4 downgradedCMS Energy Corp. to "neutral"from "outperform" based on less attractive valuation.

Although the brokerage has a positive view of the company'sperformance and regulatory and political relationships in Michigan, MacquarieCapital said it has become more selective after the strong year-to-dateoutperformance for regulated utility stocks.

The brokerage preferred Michigan's other majorinvestor-owned electric and gas utility, DTE Energy Co., to CMS, saying DTE has a comparativelybetter valuation with the supportive regulatory and political environment inthe state.

Macquarie Capital analyst Andrew Weisel said in a note toinvestors that CMS Energy would accelerate growth to 8% in the future. However,the brokerage is unable to see any upside.