Barclays (NYSE:BCS) said in a note they aren't as bullish on the regulated energy sector as they had been in 2010, and picked companies like ITC Holding (NYSE:ITC), National Grid (NYSE:NGG) DTE (NYSE:DTE) and NV Energy (NYSE:NVE), based on transmission exposure.
In the power sector, they like firms like NextEra Energy (NYSE:NEE) and AES Corp (NYSE:AES). because of not having to rely on a natural gas recovery to propel them.
Barclays said, "We enter 2011 with less conviction in our positive regulated utility/negative power view than last year. The palpable return of risk appetite among investors due to recent improvements in economic trends is responsible. While we are not reversing our stance, we are taking steps to narrow our focus. On the regulated side, we are highlighting securities that have higher growth potential due to transmission exposure (ITC Holding and National Grid or economic sensitivity due to geography and NV Energy. In Power, we like stocks that have opportunities that are tied to an economic acceleration, but are not dependant on natural gas price recovery and AES Corp.)
ITC Holding was trading at $62.33, gaining $0.35, or 0.56 percent, as of 1:47 PM EST. National Grid was trading at $44.44 0.06, up 0.14 percent. DTE Energy was trading at $45.60, up $0.28, or 0.62 percent. NV Energy was at $14.07, up $0.02, or 0.14 percent. NextEra Energy was at $52.26, up $0.27, or 0.52 percent. AES was trading at $12.62, gaining $0.44, or 3.65 percent.
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