Associated Press | Shares in Integrys Energy Group Inc., parent
of Peoples Gas and North Shore Gas,  ave gotten too expensive and its
guidance seems aggressive, said an analyst on Friday as he downgraded
the stock.

Citi Investment Research analyst Faisel Khan downgraded the company to
“Sell from “Hold,” citing the recent share price run, aggressive
earnings guidance and the stock’s current value. Shares of the company fell $1.02 to $45.87 per share in midday trading.
Since early February shares have climbed more than 14 percent to close
Thursday at $46.83.

Khan raised his target price to $42 from $40 to include the company’s
retail gas and electric division, which have recently been taken off
the selling block, and the return of capital related to the company’s
upcoming wholesale divestiture.

He expects the retail business to add 30 cents per share to 2011
earnings, which is below company forecasts of between 50 cents per
share and 55 cents per share, “which we believe includes aggressive
assumptions for volume growth and unit margins.”