Jefferies Maintains El Paso Electric Estimates

Following a downgrade of El Paso Electric Company EE – from Buy to Hold – Jefferies said that it is maintaining its 2011 EPS estimate of $2.10 and 2011 EPS estimate of $2.25. “Our 2011 estimate assumes the Palo Verde nuclear plant Unit 3 operates at an 88% capacity utilization rate,” Jefferies writes. “Furthermore, we assume the company initiates a dividend and allocates approximately $46 million of capital allocation in the form of share repurchases ($25 million) and the introduction of a dividend ($21 million).” Jefferies is also maintaining its 2012 EPS estimate of $2.30. El Paso Electric Company closed Monday at $28.43.