Avangrid's Positive Shift: KeyBanc Upgrades Stock Amid Market Optimism
Portfolio Pulse from Lekha Gupta
KeyBanc Capital Markets analyst Sangita Jain upgraded Avangrid Inc (NYSE:AGR) to Sector Weight from Underweight, citing the company's valuation moving towards the large-cap group average. Risks related to the pending merger with PNM Resources and restructuring of offshore wind PPAs are considered priced in by the market. Jain raised revenue estimates for 2023 and 2024, while slightly reducing EPS estimates.

June 21, 2023 | 6:18 pm
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POSITIVE IMPACT
Avangrid upgraded to Sector Weight by KeyBanc, citing valuation shift and priced-in risks. Revenue estimates raised for 2023 and 2024, while slightly reducing EPS estimates.
The upgrade by KeyBanc is based on the company's valuation moving towards the large-cap group average and the market pricing in risks related to the pending merger with PNM Resources and restructuring of offshore wind PPAs. This positive outlook, along with raised revenue estimates, is likely to have a short-term positive impact on AGR's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
PNM Resources is mentioned in relation to its pending merger with Avangrid, which KeyBanc analyst Sangita Jain believes is priced in by the market.
PNM Resources is mentioned in the context of its pending merger with Avangrid. KeyBanc analyst Sangita Jain believes that the risks related to the merger are already priced in by the market. As a result, the news is neutral for PNM's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50