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

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UPDATE: Jefferies Reiterates On PNM Resources On Proposed Acquisition
Benzinga's M&A Chatter for Wednesday May 7, 2014

Jefferies upgraded PNM Resources (NYSE: PNM) 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.

Posted-In: JefferiesAnalyst Color Upgrades Analyst Ratings

 

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