JPMorgan analyst Jeremy Tonet reduced the ratings for Eversource Energy ( ES ) and Portland General Electric Co ( POR ) amid JPMorgan economists’ prediction that a recession is likely this year.

The analyst writes that while President Donald Trump's announcement of a 90-day delay in tariff hikes offers a temporary reprieve, the proposed increase in tariffs on China to 125% still results in an average effective rate above 25%.

Eversource Energy ( ES ): Consequently, Tonet downgraded Eversource to Underweight from Neutral and cut the price forecast from $69 to $58.

The analyst says that he sees growing recession and tariff-related headwinds as additional downside risks for the company, given its ongoing offshore wind exposure and the persistent regulatory challenges in the Northeast, particularly Connecticut (CT).

Despite some progress in leadership confirmation at CT Public Utilities Regulatory Authority (PURA), Tonet remains skeptical that regulatory easing would meaningfully improve the company’s position.

Portland General Electric ( POR ): Also, the analyst lowered Portland General Electric’s rating from Overweight to Neutral and cut the price forecast from $55 to $44.

The analyst writes that he remains cautious due to several factors. First, the company is already facing rate backlash, which could worsen if economic pressures intensify.

Second, its small-cap profile and exposure to wildfire risk make it less attractive in a market leaning toward safety trades, adds the analyst.

Further, Tonet says that the significant financing requirements, combined with limited flexibility in the absence of a secured holding company, also disadvantage the company on a relative basis.

Price Action:

Recession Risk Is High, But Analysts Say This Sector Is Shielded From Tariff Impact