UPDATE: Jefferies Downgrades Public Service Enterprise to Hold on Valuation
Jefferies lowers its rating on Public Service Enterprise (NYSE: PEG) from Buy to Hold and reduces its price target from $35 to $32.
Jefferies comments, "We are downgrading Public Service Enterprise Group to Hold from Buy based on valuation primarily due to the loss of the basis differential between New Jersey and PJM West. …We are reducing our 2012-14 estimates following an update of our forecast model for current forward commodity prices. The major driver of the estimate revision is a reduction of the basis differential between New Jersey and PJM West. Over the past several years this differential has provided PEG with a $4.00-$5.00 per MWh price premium. During the first quarter of 2012 the price differential between New Jersey and PJM has been negligible (well under $1.00 per MWh). When we adjust our model for this lower price we arrive at lower cash flow and earnings for the company's PSEG Power merchant power subsidiary."
PEG closed at $31.61 on Monday.
Latest Ratings for PEG
|Sep 2015||JP Morgan||Initiates Coverage on||Neutral|
|Apr 2015||Deutsche Bank||Maintains||Buy|
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