UPDATE: Jefferies Downgrades El Paso Electric to Underperform

Jefferies is out with its report today on El Paso Electric

, downgrading EE from Hold to Underperform. In its report, Jefferies writes, "We are downgrading El Paso Electric to Underperform from Hold due to the recent Show-Cause order issued by the CIty Council. Jefferies believes this order will create a regulatory overhang on the stock and expect it to underperform the regulated utility group." Jefferies lowers PT on EE from $33.50 to $29.00. Shares of EE closed Tuesday at $33.32.