UPDATE: Jefferies Upgrades Public Service Enterprise Group on Improved Outlook

In a report published Tuesday, Jefferies analyst Paul B. Fremont upgraded the rating on

from Hold to Buy, and raised the price target from $36.00 to $37.00. In the report, Jefferies noted, “We are upgrading to Buy based on the improving outlook for regulatory approval of the company's ‘Energy Strong' capital spending program. Each $1.0 billion of incremental spending will add an estimated $0.10 to PEG's earnings. We assume that incremental spending is funded by debt and by incremental cash expected from the increasing gas basis differential between the Leidy hub and New Jersey. Our new estimates are considerably higher than consensus in 2014-16.” Public Service Enterprise Group closed on Monday at $32.33.