UPDATE: UBS Investment Research Downgrades Duke Energy to Neutral on Lingering Execution Risks

UBS Investment Research reduced its rating on Duke Energy (NYSE: DUK) from Buy to Neutral and cut its price target from $75 to $68.

UBS Investment Research commented, "Our support for DUK had been predicated on the underlying financial fundamentals and the value we believe could be delivered to shareholders, but that support hinged on execution risk, including personnel retention and extracting merger savings. Three key PGN executives responsible for regulatory relationships and integration have since resigned. DUK is expected to have major proceedings pending at its two flagship Carolina utilities shortly and has a pending settlement that still requires regulatory approval in Indiana which are key issues for the co."

Duke Energy closed at $66.14 on Tuesday.