CenterPoint Energy downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc analyst Sophie Karp downgraded CenterPoint Energy to Sector Weight from Overweight without a price target. The analyst believes the company’s decision to withdraw its Houston Electric rate case “introduces substantial regulatory uncertainty,” and makes defending the thesis “impossible” in the near term. While Texas continues to present an attractive growth story, the overhang created by this move, and the perception of significant relationship strain with regulators, will likely take some time to dissipate, the analyst tells investors in a research note.