Post by
Dibah420 on Jun 01, 2021 11:44am
BMO's Ben Pham
May 31, 2021 | 23:46 ET | 05:05 ET~
Fortis FTS-TSX Rating ↓ Market Perform Price: May-31 $54.82 Target ↓ $57.00 Total Rtn 8%
Lower Rating to Market Perform; Target to $57 From $60
Bottom Line: We are lowering our rating on FTS to Market Perform from Outperform (target to $57 from $60) reflecting higher interest rate expectations, USD F/X headwind, and premium valuation.
To be clear, we are still positive on the long-term outlook, and continue to see modest upside to FTS' rate base growth expectations (currently at 6% through 2025). However, we believe the current premium valuation of ~20x P/E (which is entirely justified) largely reflects these positive trends.