Wunderlich Securities Increases PT on Pepco Hodings to $19, Maintains Hold (POM)

Wunderlich Securities increased its price target on Pepco Holdings

from $18 to $19 after better than expected Q1 results. In a research report published today, Wunderlich increased its earnings per share estimate for 2011 and 2012. These increases were not enough to persuade Wunderlich to upgrade its rating on Pepco from Hold, however. In the report published today, Wunderlich states, "Pepco Holdings (

) reported 1Q EPS of $0.27 versus $0.12 a year ago and our estimate of $0.19. The better-than-expected results were driven by weather, income tax adjustments, and better holding company and unregulated results. As expected, recent rate increases had a significant impact on earnings... We are increasing our 2011 and 2012 EPS estimates to $1.24 and $1.31. With weather benefiting the second half of 2010 by $0.07 per share, POM has harder comparisons in the second half of 2011. We are increasing our target price to $19." In today's trading, Pepco added 0.41% to its value and is currently trading at $19.63.