J.P.Morgan upgrades SP AusNet (ASX:SPN) to Overweight from Neutral - the broker has reviewed the issues facing the company's network utilities, in particular the impact of declining electricity demand on tariff revenue. Although declines have been exacerbated by a mild winter, SPN's transmission revenue remains unaffected by demand. Moreover, higher bond rates look set to improve SPN's regulatory returns from the Victorian electricity transmission. Target price for the stock has been increased to $1.25 from $1.20 (current price $1.16). Based on SPN's last close, the stock is trading at an estimated price-to-earnings ratio of 16.74. If SPN meets J.P.Morgan's price target, it will return approximately 8% (excluding dividends).