Goldman Sachs Analyst Warms To Regulated Utilities

NEW YORK (AP) — Regulated utilities are slowly becoming a good investment opportunity, an analyst said Thursday while changing ratings on key members of the sector.

Goldman Sachs analyst Michael Lapides said he is becoming "incrementally more positive given valuation levels versus historical trends, the interest rate environment, and relative underperformance versus the Standard & Poor's 500 index."

Despite his more upbeat outlook, Lapides kept a "Neutral" rating on the sector, which generally has its prices set by public utility boards throughout the nation.

Lapides downgraded Portland General Electric Co. to "Neutral" from "Buy" and removed it from a preferred list of stocks to buy.

Shares of Portland General Electric fell 18 cents to $18.71 in midday trading.

While Lapides said he is "still positive" on Portland General Electric, he said there is "better opportunity" in shares of Great Plains Energy Inc., and he upgraded that company to "Buy" from "Neutral."

Shares of Great Plains rose 50 cents, or 3.2 percent, to $16.02.

Meanwhile, Lapides reaffirmed ConEdison's place on a list of stocks to sell, and a "Sell" rating for NStar.