S&P Equity Strategy Group Downgrades Utilities Sector from Overweight to Market Weight

October 20 00:00 2011

NEW YORK, October 20 (RainbowNewsLine.com) – Analyst Sam Stovall of S&P’s Equity Strategy Group has downgraded the rating of Utilities Sector from Overweight to Market Weight.

In a research note published yesterday, the analyst mentions that the improving domestic economic recovery outlook will lead to investors switching preference from utilities to cyclical sectors. The analyst expects risk aversion to recede going forward. According to the valuation, S&P 500 Utilities is the third most expensive sector trading above the overall market at 2012 EPS estimates, the analyst adds.