UPDATE: Wunderlich Raises PT on Northeast Utilities to $33 (NU)

Wunderlich is out with its report today on Northeast Utilities NU, raising its PT from $31 to $33. In a note to clients, Wunderlich writes, "Hold-rated Northeast Utilities reported 4Q10 operating EPS of $0.69 vs. $0.48 a year ago (our estimate was $0.66). The 4Q10 results reflected better-than-expected cost control and lower taxes. Full-year 2010 operating EPS were $2.16 vs. our estimate of $2.15. NU offered 2011 EPS guidance of $2.25-$2.40. Based on the reported results and our expectations for 2011, we are increasing our 2011 EPS estimate to $2.30 and our 2012 EPS estimate to $2.50; both estimates are up $0.05. Our estimates do not reflect the proposed merger with NSTAR NST. The shareholder vote for the proposed merger is March 4, and we expect shareholder approval. We are increasing our target price to $33 from $31. Shares of NU closed Friday at $33.60, up 2.14% from Thursday's close.