Deutsche Bank Raises Price Targets on Top Utilities as Rates Stay Low

Eversource Energy

This company is off the radar of many investors, but it still offers solid value at current levels. Eversource Energy (NYSE: ES) is a utility holding company engaged in the energy delivery business. Its Electric Transmission segment owns and maintains transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England.

The Electric Distribution segment consists of the distribution businesses, which are engaged in delivering electricity to retail customers in Connecticut, Massachusetts and New Hampshire, as well as to regulated electric generation businesses. This segment consists of the distribution businesses of The Connecticut Light and Power Company, NSTAR Electric Company, Public Service Company of New Hampshire and Western Massachusetts Electric Company.

The company also has a Natural Gas Distribution segment.

Shareholders in Eversource Energy are paid a solid 3.2% dividend. Deutsche Bank has a new price target of $61, up from the previous $59. The posted consensus target is $58.97, and the stock closed most recently at $59.00 per share.

NextEra Energy Partners

This company is the highest yielding of these Deutsche Bank utility stocks to buy. NextEra Energy Partners L.P. (NYSE: NEP) was formed by NextEra Energy to own, manage and acquire long-term contracted clean energy generation assets. The company’s initial portfolio consists of wind and solar projects in North America. Growth comes principally through the dropdown of additional assets from its sponsor and general partner, NextEra Energy.

NextEra Energy Partners not only owns interests in wind and solar projects in North America, but in seven contracted natural gas pipeline assets in Texas as well. It has a portfolio of approximately 2,926 megawatts of renewable energy projects. For investors concerned about the environment, this is a solid play.

NextEra Energy Partners shareholders are paid a sizable 4.03% dividend. Deutsche Bank raised its price target to $35 from $33, bringing it in line with the consensus target of $35.06. The stock closed Monday at $33.51 a share.


This is a top utility that investors can still feel very comfortable owning now. PG&E Corp. (NYSE: PCG) is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with more than 20,000 employees, the company delivers energy to nearly 16 million people in Northern and Central California.

The company operates 141,215 circuit miles of electric distribution lines, 18,616 circuit miles of interconnected transmission lines, 42,141 miles of natural gas distribution pipelines and 6,438 miles of gas transportation pipelines. It operates generation facilities with energy sources such as nuclear, hydroelectric, fossil fuel-fired and photovoltaic.

The company recently announced a clean fuel rebate of $500. The rebate is a bonus for using electricity as a clean transportation fuel, and eligible electric vehicle owners can receive one rebate per owned or leased vehicle.

PG&E shareholders are paid a 2.95% dividend. The $67 Deutsche Bank price target was raised to $69. The consensus posted consensus estimate is $67.72. Shares closed trading on Monday at $67.06.

While the upside on these stocks is somewhat limited, the safety and consistent dividends make good sense for more conservative investors. It probably makes sense to dollar cost average and buy the shares over a six-month to one-year period to help hedge against rising interest rates.

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