UPDATE: Jefferies Reiterates Buy Rating, Raises PT on OGE Energy Corp. on Compliance Strategy Prep

In a report published Friday, Jefferies analyst Paul B. Fremont reiterated a Buy rating on OGE Energy Corp. OGE, and raised the price target from $42.50 to $44.50. In the report, Jefferies noted, “OGE is preparing a compliance strategy for the EPA's federal implementation plan for regional haze recently upheld by the courts. Compliance spending could add $1.0 billion to the company's budgeted capex and may result in equity issuance If the spending is front end loaded. Jefferies estimates potential accretion of $0.10 by 2015 assuming a portion of the spending is funded with new equity.” OGE Energy Corp. closed on Thursday at $38.31.