Jefferies Raises Price Target and Tweaks Estimates on PNM Resources (PNM), Maintains Hold Rating
Get Alerts PNM Hot Sheet
Price: $35.89 -0.22%
Rating Summary:
8 Buy, 11 Hold, 1 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
Rating Summary:
8 Buy, 11 Hold, 1 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
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Jefferies is maintaining its Hold rating on shares of PNM Resources (NYSE: PNM), but is raising its price target by $0.50 to $16.50.
The firm reports that the administrative law judge recommended decision in the PNM electric rate case threatens to eliminate the $20 million additions rider agreed to under the stipulation.
An analyst at Jeffereis comments, "The rider was supposed to be effective in January 2013. The recommended decision supports other key aspects of the settlement including an $85 million rate increase implemented in two phases; $45 million increase in August 2011 and a $40 million increase implemented in January 2012. PNM and other parties have until July 1, 2011 to file reply briefs. A final NMPRC order is expected by the end of next month."
Jefferies is raising its 2011 EPS estimate by by $0.05 to $0.80 to reflect an expected implementation of higher electric rates in August 2011, bottom end of company's $0.80-$0.92 guidance range. It is also increasing its 2012 by $0.05 to $1.20 based on higher assumed retail margins at the company's First Choice subsidiary. Jefferies 2013 estimate is being cut by $0.10 to $1.20 due to the assumption that the additions rider is denied by the NMPRC in its final order.
For more ratings news on PNM Resources click here and for the rating history of PNM Resources click here.
Shares of PNM Resources closed at $16.16 yesterday.
The firm reports that the administrative law judge recommended decision in the PNM electric rate case threatens to eliminate the $20 million additions rider agreed to under the stipulation.
An analyst at Jeffereis comments, "The rider was supposed to be effective in January 2013. The recommended decision supports other key aspects of the settlement including an $85 million rate increase implemented in two phases; $45 million increase in August 2011 and a $40 million increase implemented in January 2012. PNM and other parties have until July 1, 2011 to file reply briefs. A final NMPRC order is expected by the end of next month."
Jefferies is raising its 2011 EPS estimate by by $0.05 to $0.80 to reflect an expected implementation of higher electric rates in August 2011, bottom end of company's $0.80-$0.92 guidance range. It is also increasing its 2012 by $0.05 to $1.20 based on higher assumed retail margins at the company's First Choice subsidiary. Jefferies 2013 estimate is being cut by $0.10 to $1.20 due to the assumption that the additions rider is denied by the NMPRC in its final order.
For more ratings news on PNM Resources click here and for the rating history of PNM Resources click here.
Shares of PNM Resources closed at $16.16 yesterday.
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