A stock analyst has upgraded his recommendation on shares of Hawaiian Electric Industries following the Honolulu-based utility company's signing of an agreement with the state.

Briefing.com said D.A. Davidson upgraded Hawaiian Electric to "neutral" from "underperform" and increased the target price on the shares to $27 from $24.50. The recent agreement will change the company's business model over the next several years as the state tries to increase the amount of renewable energy generated in the state.