UPDATE: Jefferies Downgrades PNM Resources to Hold on Dininishing Rate-Base Opportunity

Jefferies reduced its rating on PNM Resources

from Buy to Hold and lowered its price target from $25 to $21.50. Jefferies commented, "We are downgrading PNM Resources to Hold based on the diminishing opportunity to rate base Palo Verde Unit 3 as part of settlement involving the shut down of two units of the San Juan coal plant. A settlement between EPA and the State of New Mexico became less likely following the expiration of a 45 day administrative stay on the implementation of the EPA's regional haze federal implementation plan." PNM Resources closed at $21.20 on Monday.