Fortis reinstated with an Underperform at BofA

BofA reinstated coverage of Fortis with an Underperform rating and C$60 price target. The firm forecasts below-average 4.6% EPS compound annual growth on the base capital plan from the Canadian utility holding company, operator of 10 regulated utilities across North America, and expects earnings upside from incremental spending could be limited by equity needs to support “the strained balance sheet,” the analyst tells investors.