UPDATE: UBS Upgrades TECO Energy (TE) to Buy

UBS upgraded TECO Energy (NYSE: TE) from Neutral to Buy with a price target of $22 (from $19). Analyst Julien Dumoulin-Smith noted its above-average growth profile.

"The reduced base price for TECO Coal is a negative as is the weaker electric sales forecast for 2015, but we believe the reaction in the share price is overdone," said Dumoulin-Smith.

"The stock was down ~3% after reporting earnings Monday and has shed 6% in the past two days. Following the divestiture of the coal business, we believe TECO should trade at a premium given its favorable jurisdictions and lack of rate cases on the horizon. Furthermore, we think TECO's above-average growth rate and size makes it a potential M&A target, with slower-growth large-cap utilities looking to use their premium currencies," added the analyst.

For an analyst ratings summary and ratings history on TECO Energy click here. For more ratings news on TECO Energy click here.

Shares of TECO Energy closed at $20.44 yesterday.

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