Jefferies Boosts PT on El Paso (EE) to $28, Keeps Underperform Rating; Regulatory Issues Persist
EE Hot Sheet
Rating Summary:3 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 20 | Down: 11 | New: 38
Jefferies raised its price target on El Paso Electric (NYSE: EE) from $27 to $28 following third-quarter results, but maintained an Underperform rating.
El Paso reported earnings of $1.40 per share, in-line with Jefferies and about views calling for $1.33 per share. Looking ahead, El Paso raised its fiscal 2011 earnings expectations from $2.20 to $2.50 to a range of $2.40 to $2.60, with the primary driver being the hotter than normal summer weather which impacted El Paso's territory.
The company is anticipating a 45% payout ratio in 2012 which would equate to a $1.05-$1.10 dividend.
Jefferies issued a regulatory update: "On November 15th the El Paso City Council is expected to decide on temporary rates. The company will file a rate case with both the City and Public Utility Commission of Texas (PUCT) with a final decision not expected prior to August 2012. There are basically three options that the City Council could take on November 15th. Regardless of what the City Council decides on November 15th the company still has to file a rate case by February 2012.
For more ratings news on El Paso Electric Company click here and for the rating history of El Paso Electric Company click here.
Shares of El Paso Electric Company closed at $32.27 yesterday, with a 52 week range of $24.73-$35.65.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
El Paso reported earnings of $1.40 per share, in-line with Jefferies and about views calling for $1.33 per share. Looking ahead, El Paso raised its fiscal 2011 earnings expectations from $2.20 to $2.50 to a range of $2.40 to $2.60, with the primary driver being the hotter than normal summer weather which impacted El Paso's territory.
The company is anticipating a 45% payout ratio in 2012 which would equate to a $1.05-$1.10 dividend.
Jefferies issued a regulatory update: "On November 15th the El Paso City Council is expected to decide on temporary rates. The company will file a rate case with both the City and Public Utility Commission of Texas (PUCT) with a final decision not expected prior to August 2012. There are basically three options that the City Council could take on November 15th. Regardless of what the City Council decides on November 15th the company still has to file a rate case by February 2012.
- The City Council can take the company’s recommendation not to implement temporary rates.
- The City Council can accept current rates as temporary rates. This leaves the decision of whether the utility needs to refund rates up to the PUCT. This was the option recommended by the City Council’s outside attorney.
- The City Council can vote to implement temporary rates at a reduced level.
For more ratings news on El Paso Electric Company click here and for the rating history of El Paso Electric Company click here.
Shares of El Paso Electric Company closed at $32.27 yesterday, with a 52 week range of $24.73-$35.65.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- UPDATE: Auriga Starts Teva Pharma (TEVA) at Hold; Sidelined Until New CEO Is Convincing
- UBS Maintains a 'Buy' on Express Inc. (EXPR); A Misstep, But Still A Consistent Performer
- UPDATE: Millennial Media (MM) Reports Better-Than-Expected Q1 Loss of 5c/Share; Guides Q2 Revs Above the Street
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, Dividend, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
