The firm's adjustment comes after the Kansas City-based electric utility company announced the acquisition of rival Westar Energy (WR) for $8.6 billion on Tuesday.
Per the deal, Great Plains will assume $3.6 billion of Westar's debt and increase its customer base to 1.5 million in Kansas and Missouri.
However, the merger creates regulatory and financing risks for Great Plains, according to Barclays.
"While we find the company's guidance that the transaction is neutral to EPS (earnings per share) in the first calendar year in '18 and provides 6-8% long-term EPS growth defensible, we believe that a very crowded regulatory calendar and the high sensitivity to financing costs the transaction employs through a great deal of leverage will cause the stock to underperform the utility group into the close of the transaction," Barclays analysts said in an investor note.
Separately, TheStreet Ratings rated Great Plains Energy as a "buy" with a score of A-.
This is based on the convergence of positive investment measures. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in net income, solid stock price performance and growth in earnings per share. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: GXP
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.