UPDATE: Jefferies Upgrades PNM Resources to Buy on Rate Settlement Opportunity

Jefferies upgraded PNM Resources

from Hold to Buy and raised the price target from $21.50 to $24.00. Jefferies noted, "Upgrade to Buy based on opportunity to rate base Palo Verde Unit 3 following settlement between EPA and the State of New Mexico. The settlement agreement provides for the retirement of San Juan Generating Station Units 2&3 totaling 838 MW by the end of 2017. San Juan Units 1&4 (863 MW) would be required to install selective noncatalytic reduction technology in early 2016. Jefferies has previously quantified the potential upside of adding Palo Verde Unit 3 to rate base as adding $0.20 of incremental EPS.." PNM Resources closed at $21.16 on Friday.