Eversource’s Aquarion rate case appeal denied, says UBS

UBS made no change to the firm’s Neutral rating and $62 price target on Eversource Energy shares after the Connecticut Superior Court in New Britian denied the company’s Aquarion rate case appeal except for the recalculation and recovery of state and federal taxes for recovery, rate case expense recovery and to address the arbitrary and capricious WACC return on $56M of customer funds held. UBS expects investors to respond negatively and says the decision could impact the ability to earn the 8.7% return on equity as the company argues in the case.