MS cuts Redeia to 'underweight' on bond yield pressure

** Morgan Stanley downgrades its rating on Spanish power grid operator Redeia REDE.MC to "underweight" from "equal weight" as higher bond yields reduce the prospect of short-term earnings growth

** The broker notes that these rising yields increase uncertainty around the company's value creation prospects and create scope for a potential relative de-rating

** MS adds that among regulated utilities it now prefers National Grid NG.L and Elia ELI.BR

** It also cuts its PT on Redeia by 12.5% to €14

** Out of 24 analysts that cover Redeia, 11 rate the stock "strong buy" or "buy,"​ 9 rate it "hold" and 4​ rate the stock "strong sell" or "sell" - LSEG data