Wells cuts NorthWestern Energy to Underweight on valuation, risk of deal closure

As previously reported, Wells Fargo downgraded NorthWestern Energy (NWE) to Underweight from Equal Weight with a price target of $53, down from $58, on valuation and increasing discomfort around the deal with Black Hills (BKH). Shares are now in-line vs Utilities Select Sector Index, while the firm sees risk/reward skewing negative given mounting uncertainty around the Black Hills merger – if deal breaks, Wells expects noticeable downside risk with shares.