Portland General Electric Co. (POR)

[eFinanceMarkets]

$POR Portland General Electric cut to Sell at Williams Capital

Portland General Electric (POR -2.5%) is downgraded to Sell from Hold with a $41 price target, trimmed from $44, at Williams Capital, which says POR's once-strong case for significant growth over the next few years has dwindled considerably.

Oregon's PUC staff has recommended both a poor outcome from the IRP and a rate cut in the pending base rate case in its initial June 16 testimony, and Williams says current consensus expectations do not appear to reflect what is clearly disappointing results from either the IRP or rate case dockets.

The firm sees limited residential load growth at best and often declining weather adjusted load with rising operating expenses, thus near-term EPS growth will be difficult to achieve absent a rate case or IRP/RFP successes.