Morgan Stanley with a comment on the utility sector

The Dow Jones Utility Average is close to the new ATH, with Morgan Stanley analysts reviewing their favorite major players in the sector that will be in focus next year and in 2021.

Stanley believes markets still underestimate the free cash flow that Exelon generates. The company's business segments in sales and margin stability from timely payments from counterparties reveal a very good potential investment opportunity. The same goes for PSEG, which also has a stable business segment and sales that generate cash flows of $ 530 million a year.

NextEra Energy is also another Morgan Stanley favorite. The company estimates for 2012 are 10% higher, with the company typically updating its EPS with between 6 and 8% increases, which will remain even in 2022.

FirstEnergy is also a favorite, with the EPS continuing to beat expectations and the corporate risks behind the company weak. These are sufficient indicators to move stocks up in the long run.

The bank also likes Atmos Energy. The natural gas supplier generates strong revenue, maintains a stable EPS, and risks behind the company are also small.

However, Morgan Stanley remains attentive to the companies: Edison Consolidation, Pinnacle West, Southern Co. and Spire, recommending avoiding them sooner.

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