Analyst Downgrades Hawaiian Electric to Sell, Price Target Reduced to $12.50
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Rating Downgrade: Jefferies analyst Julian Dumoulin-Smith downgraded Hawaiian Electric from buy to sell, reflecting uncertainty about the company's future performance, which led to a 2.5% drop in stock price on Tuesday.
- Price Target Adjustment: The analyst reduced the price target for Hawaiian Electric by $1 to $12.50, indicating a weakening market confidence that may influence investor decisions.
- Legislative Risks: The analyst highlighted significant risks for Hawaiian Electric, including legislative impacts on its funding and pricing capabilities, which could place the company at a disadvantage in a competitive utility market.
- Market Pressure: With rising concerns about affordability in electricity pricing, Hawaiian Electric is not the only utility facing pressure, suggesting broader challenges across the industry regarding pricing strategies.
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Analyst Views on HE
Wall Street analysts forecast HE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HE is 11.00 USD with a low forecast of 10.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 15.800
Low
10.00
Averages
11.00
High
12.00
Current: 15.800
Low
10.00
Averages
11.00
High
12.00
About HE
Hawaiian Electric Industries, Inc. is a holding company that provides energy services. The Company’s subsidiaries are principally engaged in electric utility and non-regulated renewable/sustainable infrastructure businesses operating in the State of Hawaii. Its electric utility, Hawaiian Electric Company, Inc. (Hawaiian Electric), supplies power to approximately 95% of Hawaii’s population. The Company operates through the electric utility segment. Hawaiian Electric and its operating utility subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric), are regulated electric utilities that provide essential electric service to approximately 95% of Hawaii’s population through the operation of five separate grids that serve communities on the islands of Oahu, Hawaii, Maui, Lanai and Molokai. Its subsidiary, Pacific Current, LLC, invests in non-regulated clean energy and sustainable infrastructure in the State of Hawaii.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hawaiian Electric Downgraded by Jefferies, Price Target Cut to $12.50
- Rating Downgrade: Jefferies analyst Julian Dumoulin-Smith downgraded Hawaiian Electric from buy to underperform, reflecting uncertainty about the company's future, which led to a 2.5% drop in stock price on Tuesday.
- Price Target Adjustment: The analyst cut the price target by $1 to $12.50, indicating a weakening market confidence in Hawaiian Electric, which may affect investor buying decisions.
- Market Uncertainty: The analyst highlighted that Hawaiian Electric faces uncertainties regarding legislative decisions and pricing standards, which diminishes its competitive edge compared to other utility stocks and could lead to further stock price pressure.
- Industry Pressure: With rising concerns about affordability, Hawaiian Electric may experience increased pricing pressure, reflecting challenges faced by the entire utility sector in the current economic environment.
Continue Reading
Analyst Downgrades Hawaiian Electric to Sell, Price Target Reduced to $12.50
- Rating Downgrade: Jefferies analyst Julian Dumoulin-Smith downgraded Hawaiian Electric from buy to sell, reflecting uncertainty about the company's future performance, which led to a 2.5% drop in stock price on Tuesday.
- Price Target Adjustment: The analyst reduced the price target for Hawaiian Electric by $1 to $12.50, indicating a weakening market confidence that may influence investor decisions.
- Legislative Risks: The analyst highlighted significant risks for Hawaiian Electric, including legislative impacts on its funding and pricing capabilities, which could place the company at a disadvantage in a competitive utility market.
- Market Pressure: With rising concerns about affordability in electricity pricing, Hawaiian Electric is not the only utility facing pressure, suggesting broader challenges across the industry regarding pricing strategies.
Continue Reading