Deutsche Bank Downgrades ITC Holdings Shares To Hold, Sees Slight Downside For The Stock

In a research report issued today, Deutsche Bank analyst Jonathan Arnold downgraded ITC Holdings Corp (NYSE:ITC) to Hold from Buy, while maintaining $38 price target, which represents a slight downside potential from current levels.

Arnold wrote, “ITC is up over 12% in two weeks, leading the utility rally and leaving little headroom for value- conscious investors. Recent gains follow FERC not taking up cap structure in the MISO case, but this never seemed a major risk to us. Close to $40 we see ITC ahead of itself on risk/reward around ROE, particularly with mark-to-market of FERC’s methodology pointing to 10.3% vs. the 11% we model for ITC. We acknowledge possible REIT upside and capex potential from the Lake Erie Connector, but neither seems likely to play out near-term. Given superior growth year-end can be a good time to hold ITC as valuations roll forward; at these levels though we’re more inclined to step aside.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Arnold has a total average return of 8.7% and a 78.8% success rate. Arnold has an 16.7% average return when recommending ITC, and is ranked #471 out of 3355 analysts.

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