Eversource downgraded at Guggenheim after Sunrise’s OREC adjustment denial

As previously reported, Guggenheim analyst Shahriar Pourreza downgraded Eversource to Neutral from Buy with a price target of $60, down from $70. Yesterday’s unanimous denial of Sunrise’s OREC adjustment request “marks a new low in ES‘ protracted attempt to exit its offshore wind JV,” and the decision puts “not only the fate of this particular project in doubt, but also the entire sale process,” the analyst tells investors. The firm, which admits to having been “wrong all year on shares,” sees this latest data point as “a trigger to step to the sidelines” as it now believe shares “will be in the penalty box for some time” and continue to trade at a structural discount to the group over wind execution uncertainty, balance sheet unknowns and Connecticut overhangs.