UPDATE: Credit Suisse Downgrades Pepco Holdings to Neutral, Lowers PT

In a report published Friday, Credit Suisse Group downgraded its rating on Pepco Holdings

from Outperform to Neutral, and lowered its price target from $23.00 to $20.50. Credit Suisse noted, “We are lowering POM to Neutral from Outperform with a new $20.50 (from $23.00) price target as application of the unexpected negative LILO (lease in/lease out) decision against ConEd puts ~$0.13 of annual EPS at risk assuming POM unwinds the leases in '13 as PEG has already done. We still like the long-term opportunity to re-rate earned ROEs but concede the potential earnings risk and busy rate case schedule in 1H13 make it hard for POM to outperform its peers.” Pepco Holdings closed on Thursday at $19.42.