UPDATE: Jefferies Lowers PT to $34.50 on El Paso Electric Company; Lower Rate Forecast

Jefferies cuts its price target from $35.50 to $34.50 on Buy-rated El Paso Electric Company EE as lower rate forecasts lead to lower estimates. Jefferies comments, "El Paso reported 1Q12 earnings of $0.08 versus our estimate of $0.10, First Call Consensus of $0.13, and versus $0.16 during the same period last year. EE provided its 2012-14 rate base forecast which was on average $130 million less than our previous rate base estimates. The company lowered 2012 guidance to $2.05-$2.40 versus a previous range of $2.15-$2.55 primarily as a result of the settlement in the Texas rate case." EE closed at $30.46 on Wednesday.