CH Energy Group Inc. (NYSE:CHG) shares were downgraded to "Sell" from "Hold" by Brean Murray, Carret & Co. based on the higher probability the company is sold to Fortis, given the shareholder vote yesterday approving the transaction.
BMC analysts Michael Gaugler and Christopher Noon are of the view that investors should redeploy capital across the remainder of their coverage universe of gas/electric utilities that offer significant upside potential (SJI, NU and WGL) of greater than 15 percent upside to their current target prices.
"The recent market pullback has created what we see as exceptional opportunities to acquire shares in other gas/electric utilities in our coverage universe at very attractive valuations that offer more upside than holding CHG shares beyond this point," the analysts wrote in a note.
The analysts maintained a price target of $65.00 on the stock.
Poughkeepsie, New York-based CH Energy is an energy delivery company engaged in regulated transmission and distribution utility operations through subsidiary Central Hudson Gas & Electric Corp. The company also operates subsidiary Central Hudson Enterprises Corp. (CHEC), a non-regulated subsidiary comprised primarily of Griffith Energy Services (Griffith). Griffith supplies petroleum products.
The stock, which has been trading in the 52-week range of $48.00 to $67.48, added 0.18 percent to trade at $65.05 on Wednesday.