UPDATE: Wunderlich Raises PT on Pepco Holdings to $18 (POM)

Wunderlich is out with its report today on Pepco Holdings POM, raising its PT from $17 to $18. In a note to clients, Wunderlich writes, "Pepco Holdings reported 4Q10 EPS of $0.25 versus $0.18 a year ago (our estimate was $0.17). However, the 4Q10 results included a $0.07 gain from a federal tax settlement, so recurring earnings were $0.18. Without tax gains and other non-recurring items, full-year 2010 EPS totaled $1.13 versus management guidance of $1.00-$1.10. The full-year results included a weather benefit of $0.03, so earnings were slightly better than expected, driven by weather and offset by higher operating costs. We are maintaining our earnings estimates and Hold rating, but increasing our target price to $18 from $17." Shares of POM closed Friday at $18.43, down 0.16% from Thursday's close.