Portland General Electric cut to Neutral at UBS on ‘regulatory inflexibility’

UBS analyst Gregg Orrill downgraded Portland General Electric (POR) to Neutral from Buy with a price target of $47, down from $52, because recent regulatory decisions have altered the firm’s thesis and leads it to see “a more balanced risk/reward.” The December 20 rate case decision authorized a “low” 9.34% ROE and only 45% of the base request, which means Portland General likely has to cut costs to deliver on fourth quartile 5%-6% EPS growth, the analyst tells investors.