The energy company is trading at more than 20x its projected 2023 earnings per share, the highest multiple within KeyBanc's regulated utility coverage and at a 3x premium to the average large-cap regulated utility, according to the firm.
KeyBanc downgraded its rating on the Avangrid stock to underweight from sector weight and set a downside price target of $40.
"We view this relative valuation as misaligned with the underlying fundamentals and outlook of these names, and consequently see better opportunities elsewhere," KeyBanc Analysts Sangita Jain, Sophie Karp and Michael Pelletier said in a note emailed Monday.
Price: 46.06, Change: -0.06, Percent Change: -0.13
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