trending Market Intelligence /marketintelligence/en/news-insights/trending/4WOh9htbEEkH6PtFkAlSCw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Jefferies downgrades PNM, lowers price target over pending rate case

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Jefferies downgrades PNM, lowers price target over pending rate case

Jefferies LLC on Jan. 5 downgraded PNM Resources Inc. to "hold" from "buy" and lowered the company's price target to $34.50 from $36.50.

"We are downgrading PNM to Hold from Buy and believe the stock is pricing in a near-perfect outcome in the utility's recently filed New Mexico electric rate case. Given the historic contentious nature of NM rate cases and the stock trading at a group average P/E multiple we see limited upside from here," Jefferies analyst Anthony Crowdell said in a report.

In December 2016, the company's Public Service Co. of New Mexico subsidiary filed for a rate increase of about $99 million predicated on a 10.125% ROE that would be implemented in two steps over two years commencing Jan. 1, 2018. The proposed increase would hike residential costs 13% and would also include a "lost contribution to fixed costs" rider for residential and small commercial customers.

The research group's downgrade was made in light of "a less than optimal decision" in PNM's previous New Mexico rate case, which denied recovery of costs related to the acquisition of an additional interest in the Palo Verde nuclear plant, leasehold improvements and balanced draft technology.

Jefferies also maintained its 2016 EPS guidance at $1.60, 2017 EPS at $1.80, and 2018 and 2019 EPS at $2.