PSEG price target lowered to $64 from $70 at Guggenheim

Guggenheim lowered the firm’s price target on PSEG to $64 from $70 and keeps a Buy rating on the shares. While the firm’s results showed utilities are approximately 5% cheaper now compared to its valuation models, this discount is insufficient to provide support for the group and attract incremental investors against the ongoing backdrop of macroeconomic risks, generational rate volatility, and tax loss selling that will remain prevalent in the near term, the analyst tells investors. Either a pullback in utility stocks or an increase in rate visibility is necessary before any incremental flows will happen, the firm believes.