Northeast Utilities System (NU) Maintains Buy Rating

Soleil Securities has maintained its Buy rating for Northeast Utilities System (NYSE: NU). The company has made no changes to the transmission investment growth story.

According to Soleil Securities, on the financial front the main challenges faced by utilities this year is renewal of credit lines. The current $900 million credit line at Northeast Utilities comes up for renewal in November of this year. The management expects to renew its credit line at the going rate of 200 basis points over LIBOR.

Northeast Utilities is not expected to raise any equity financing until after 2011, according to its CFO. Soleil Securities has maintained its EPS estimates of $1.86 for 2009, $1.94 in 2010 and $2.14 in 2011. The price target for Northeast Utilities System has been maintained at $30.