WTRG - CenterPoint PSEG upped and Duke AEP cut in Goldman utilities shuffle

Utility sector (XLU) valuations are mostly attractive in the continued low interest rate environment, Goldman Sachs says as it tilts its favored names slightly toward value stocks in diversified utilities, upgrading CenterPoint Energy (CNP) and Public Service Enterprise Group (PEG) to Buy while downgrading large-cap regulated utilities Duke Energy (DUK) to Neutral and American Electric Power (AEP) to Sell.Goldman says CenterPoint's regulated utilities trade at an implied 2.5x discount to peers, which it says is "unwarranted given above-average EPS and DPS growth combined with plans to reduce/eliminate its midstream exposure."On PEG, the firm sees "upside to consensus driven by a favorable gas price view and higher regulated rate base growth."In cutting AEP to Sell, Goldman cites consensus risk driven by conservative rate case outcome assumptions and an unfavorable view of the company's rate making jurisdictions.The firm downgrades Duke largely on valuation, as it no longer sees compelling return potential after

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CenterPoint, PSEG upped and Duke, AEP cut in Goldman utilities shuffle