瑞信-美股-能源行业-美国电力与燃气公用事业：行业溢价正升至创纪录水平-2020.3.9-27页.pdf

9 March 2020 Equity Research Americas | United States Electric and Gas Utilities Sector Premium is Building to Record Levels Electric Utilities | Comment Utilities proving relatively resilient – and the premium is building. Current market Research Analysts conditions favoring defensive investment strategies and sectors amid recession fears would appear to prefer regulated utilities with higher earnings growth rates and expertise in utility Michael Weinstein, ERP scale renewables with favorable locations and a demonstrated willingness to diversify into 212 325 0897 renewable energy. Among names that we find interesting to highlight in this regard are D w.weinstein@ (O/P), DUK (O/P), PNW (O/P), NEE (N), CMS (N), ES (N). We continue to note Maheep Mandloi increasing forward P/E distribution as the same “go-to” names are bought, with U/P rated 212 325 2345 WEC and ED expensive vs our target prices. maheep.mandloi@ Rapidly descending oil pricing continues to pressure CNP (O/P), now trading at a Andres Sheppard 30% discount to peers (2021 P/E). This is due to its 18% earnings exposure to ENBL. 212 325 2306 However, we calculate that a hypothetical halving of ~$300M annual ENBL distributions andres.sheppard@ could require ~$1B of credit-supportive equity, resulting in about $0.08 EPS dilution (only ~6% equity price dilution). Utility sector equities have outperformed the SPX 9% year-to-date 2020. We won’t pretend to know where the bottom lies for the broader