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Article: Sector Snap: Utilities rated "Neutral" on outlook
- Article from:
- AP Online
- Article date:
- July 30, 2009
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An uncertain energy demand outlook will pressure utility companies in the short run, said an analyst as he rated the sector "Neutral," adding that it may take several quarters until an economic recovery and new policies boost the sector.
Baird analyst David Parker said the industry is up against changing economic policies, a weakened consumer and significant state budget deficits, which could keep investors at bay.
"Besides pressuring energy demand, the current recession appears to have diminished stakeholders' resolve to pursue energy infrastructure investments until it's obvious what the long-term outlook for demand may be," said Parker.
He lowered his ratings on Progress Energy Inc. and UIL ...