Credit Suisse Maintains Public Service Enterprise Group (PEG) Outperform Rating

Credit Suisse analysts Dan Eggers, Kevin Cole, Yang Y. Song and LinLin Sun maintained their Outperform rating of shares of Public Service Enterprise Group (NYSE: PEG) with a price target of $35.

The analysts attended Public Service Enterprise Group's analyst day, where management reiterated its 2010 guidance of $3 to $3.25 earnings per share and the Credit Suisse analysts updated their EPS estimates for 2010-2012 to $3.13, $3.15, and $3.20, respectively.

The analysts found that Public Service Enterprise Group faced less environmental liability then many of its peers and wrote that, "PEG provided color on EPA regulation in terms of SO2, NOx, Mercury and cooling tower. It is important to note (1) PEG does not operate any wet coal cash storage, which is the primary focus of EPA coal ash regulatory effort. (2) By YE10, Power’s entire coal fleet will have control equipment for SO2, NOx and Mercury except for NOX control (SCR) to be installed at Conemaugh in 2014. (3) EPA is working on a cost / benefit analysis on cooling water towers and management does not expect NJ EPA to require Salem to install cooling towers as was required at EXC’s Oyster Creek."