CMS Energy (CMS) Stock Price Target Lifted at KeyBanc
NEW YORK (TheStreet) -- CMS Energy's (CMS) - Get Report stock price target was raised to $47 from $45 at KeyBanc Capital Markets on Friday. The firm has an "overweight" rating on shares.
The Jackson, MI-based energy company is focused primarily on utility operations in Michigan.
The higher price target comes as the firm believes Britain's exit from the European Union should act as a tailwind for utilities.
"With the market uncertainty introduced by the U.K. exit from the European Union, we expect utilities will continue to outperform the broader market," KeyBanc wrote in an analyst note earlier today.
"We believe the tone of the Federal Reserve will grow more accommodative, after the most recent commentary had already grown incrementally more dovish," the firm added.
KeyBanc continues to favor the "defensiveness" and yield of U.S. utilities.
The market is expected to continue to be impacted by multiple sources of uncertainty. Additionally, the full impact of Brexit on world markets will likely not be known for some time, according to the firm.
"With the Fed already having backpedaled recently (shortly before the Brexit vote) about potential near-term rate hikes, we would look for incrementally accommodative language around near to intermediate-term monetary policy. As such, we expect utilities to outperform in a risk-off market," KeyBanc added.
Shares of CMS Energy are down 0.72% to $45.51 late this afternoon.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks rated by the team. Among the primary strengths of the company is its solid stock price performance.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CMS