Fortis initiated with a Hold at Jefferies

Jefferies analyst Julien Dumoulin-Smith initiated coverage of Fortis (FTS) with a Hold rating and C$67 price target The company appears to be in a strong position with incremental capex upside opportunities, which justifies the stock’s premium valuation, the analyst tells investors in a research note. However, the firm says Fortis has limited balance sheet flexibility, which could be exacerbated by currency swings and tax reform. As such, it sees little room for multiple expansion from the current valuation.