PSEG downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Jeremy Tonet downgraded PSEG (PEG) to Neutral from Overweight with a price target of $85, down from $88. The firm sees the company’s “meaningful” political and regulatory uncertainty persisting. A further deterioration in the New Jersey regulatory environment can’t be ruled out post the 180 day study, the analyst tells investors in a research note. The firm believes PSEG’s risks are skewed to the downside given the state’s elevated scrutiny on regulated returns and overall ratemaking components. In addition, heightened affordability scrutiny will prevent meaningfully accretive New Jersey nuclear contracting, says JPMorgan.