Middlesex Water initiated with an Underperform at BofA

BofA initiated coverage of Middlesex Water (MSEX) with an Underperform rating and $56 price target Middlesex is “the most expensive utility in our coverage,” trading at a 47% premium to the utility group and 13% premium to the water group, notes the analyst, who does not think the current valuation is justified given the firm’s expectations that the company’s rate base and EPS growth will moderate below the peer average.