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

JPMorgan analyst Jeremy Tonet sees utility companies relatively well-positioned amid concerns that recent tariff hikes could trigger a global recession.

What Happened: JPMorgan projects a -0.3% U.S. GDP contraction in 2025.

Maia G. Crook, also a JPMorgan analyst, says the probability of a U.S. recession has surged to 60%. That’s up from 40% last month, due to the latest round of tariff hikes.

The analysts’ view on utilities reflects the sector’s regulated return profile and cost-of-service structure, which insulate them from direct tariff-related EPS impacts.

Moreover, potential rate cuts may further boost their income appeal.

Meanwhile, Tonet says that prolonged tariff uncertainty could harm sentiment and the broader economy, creating affordability challenges that ...

https://www.benzinga.com/analyst-ratings/upgrades/25/04/44698711/jpmorgan-analyst-recession-risk-sees-utilities-shielded-from-tariff-impact