UPDATE: JP Morgan Reduces PT to $20 on Pepco Holdings on Regulatory Wildcards Ahead

JP Morgan reiterates its Neutral rating on Pepco Holdings POM and reduces its price target from $21 to $20. JP Morgan comments, "We are reviewing Pepco's regulatory calendar ahead of five general rate case decisions expected in the second half of the year, including two in Maryland in early July. The company has a chance to take a modest step forward on regulatory lag and under-earning issues at its NJ, DC and DE jurisdictions, but MD remains a wildcard in our opinion. …Despite an exceptionally attractive yield, we see the combination of MD risk and improvement potential in other jurisdictions as offering a balanced risk/reward picture for POM shareholders and are maintaining our Neutral rating." POM closed at $19.47 on Wednesday.