UPDATE: Wunderlich Securities Color On POM Target Increase

Wunderlich Securities, which raised its PT on shares of Pepco Holdings, Inc. POM, is providing some color on the stock. “POM reported 1Q EPS of $0.27 versus $0.12 a year ago and our estimate of $0.19,” Wunderlich Securities writes. “The better-than-expected results were driven by weather, income tax adjustments, and better holding company and unregulated results. “As expected, recent rate increases had a significant impact on earnings. However, we note that a large portion of the recent rate increases will be realized in the first half of 2011 (see Figure 1). We are increasing our 2011 and 2012 EPS estimates to $1.24 and $1.31. With weather benefiting the second half of 2010 by $0.07 per share, POM has harder comparisons in the second half of 2011.” Pepco Holdings closed Friday at $19.55.