CMS Energy shares fall despite upgrade

CMS Energy shares fell a penny to close at $10. Earlier in the session, the stock jumped as much as 28.4 percent to $12.85. The shares have traded between $8.33 and $18.07 over the past year, and are off 42 percent since January.

Barclays Capital analyst Daniel Ford said in a note that the Jackson, Mich.-based utility had adequate liquidity with no need to issue new equity, but he did lower his price target to $14 from $16 and cut his growth and earnings outlook for the company.

Ford said his forecast takes into account the weak U.S. and Michigan economies with a flat growth rate in 2008 and '09, 0.3 percent growth in 2010 and 0.7 growth percent in 2011.

He cut his full-year earnings forecast by 8 cents to $1.12 per share and dropped his 2009 outlook by 5 cents to $1.23 per share.

The analyst rates the stock at "Overweight."

CMS Energy subsidiary Consumers Energy is an electric and natural gas utility serving about 6.5 million of Michigan's 10 million residents. With its CMS Enterprises subsidiary, CMS Energy also is engaged in independent power generation in several states.