Northeast Utilities Downgraded To Hold

Northeast Utilities System (NYSE: NU) is being downgraded to Hold (from Buy) based on valuation, according to Wunderlich Securities, as shares are within 2% of the $30 price target.

EPS are unchanged at $1.95/$2.20/$2.40 for 2010/2011/2012, respectively.

Wunderlich reports that NEEWS is NU's large transmission expansion project, and is continuing to gain momentum, while the first major phase of the project, called Greater Springfield, is awaiting Massachusetts approval in 3Q. Some modest delay is possibly for the other phases of the project, Interstate and Central CT.

Wunderlich maintains its $30 price target.

Northeast Utilities System closed yesterday at $29.48.