Goldman Sachs Raises PT on El Paso Electric to $35

Goldman Sachs has published a research report on El Paso Electric Company (NYSE: EE) after the company saw a rate freeze as voted by the El Paso City Council.

In the report, Goldman Sachs writes, "On Tuesday, November 15, the El Paso City Council voted to implement a rate freeze, versus an interim revenue reduction, for El Paso Electric (EE, Neutral), pending a final decision from the Public Utilities Commission of Texas (PUCT) in late 2012. We previously forecasted a $10mn interim reduction in 2011/2012, so the decision by the El Paso City Council came as a positive surprise relative to our expectations. We therefore raise our 2011/2012 EPS estimate from $2.43/$2.27 to $2.46/$2.43, while reiterating our 2013/2014 EPS forecasts of $2.60/$2.71."

Goldman Sachs maintains its Neutral rating and has raised the price target from $34 to $35 on El Paso Electric, which closed yesterday at $34.26.