With 10-year Treasury yields likely to remain at or below 3% for the next few quarters, and with utility valuations near historical average levels, we upgrade our coverage view on both Diversified Utilities and Regulated Utilities to Neutral from Cautious. When Treasury yields remain below 3%, utilities generally trade more in-line or even at a premium to the S&P, and only at higher Treasury yield levels do utilities trade at a 1.0-1.5X discount to the market. We still expect earnings to trough for Diversified 公用事业 in 2012 and dem和 growth to remain weak in most of the 我们.
我们增加大盘 PPL 中小盘EE的强力买入名单
PPL仍处于行业以打折的同龄人，但优惠（1）5.5％的股息收益率;（2）积极的催化剂，包括项目在肯塔基州审批的环境，和（3）长期暴露在紧缩电力市场煤删除植物，相对较低鉴于PPL的排放代机群。除了从高于平均水平的需求增长中受益，显著股权分配EE提供了机遇 - 通过业界领先的股息增长和正在进行的股票回购计划。