UPDATE: Jefferies Cuts PT to $32 on El Paso Electric on Updated Estimates
Jefferies reiterate its Hold rating on El Paso Electric (NYSE: EE) and reduced its price target from $36 to $32.
Jefferies noted, "Following an update of our forecast model we are lowering our 2013 estimate by $0.05 to $2.35 and our 2014 estimate by $0.15 to $2.35. … The major positive drivers for the three year period include customer growth, the AFUDC contribution of new projects and rate relief. Offsetting these positives is the loss of AFUDC contribution when new projects go on line, higher depreciation expense, increased interest expense and higher operating costs. Also contributing to the earnings drag is expense inflation and a return to normal weather."
El Paso Electric closed at $31.82 on Wednesday.
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