UPDATE: Credit Suisse Upgrades ITC Holdings Corp. Following FERC's ROE Decision

In a report published Friday, Credit Suisse analyst Dan Eggers upgraded the rating on ITC Holdings Corp. (NYSE: ITC) from Underperform to Neutral, and raised the price target from $34.50 to $36.00.

In the report, Credit Suisse noted, “We are upgrading ITC to Neutral after FERC's decision to put the MISO base ROE review to hearings while tossing complaints against ROE incentives and setting a target equity ratio at 50% (vs ITC's 60%). The decision mitigates some of the risks we saw and the 12+ months of hearings pushes out the time horizon to ROE risk, limiting downside potential and putting the stock more neutral vs other utilities. We're not compelled by ITC shares at our new $36 target, but see potential positives/negatives pushed out to make an impact.”

ITC Holdings Corp. closed on Thursday at $36.12.