Jefferies Upgrading PNM Resources (PNM)

Jefferies & Co. is out with a research report on PNM Resources PNM and is upgrading shares to Buy with a Hold is raising its price target to $16 from $15.50. In a note to clients, Jefferies & Co. writes, "We are upgrading PNM Resources to Buy from Hold based on potential future earning upside from cost reduction and expected future rate filings. Our current forecast estimates do not include any of these potential benefits. Absent earnings upside, the stock is still cheap trading at a 12.0% P/E discount relative to its regulated peers." Shares of PNM lost 9 cents on Friday to close at $14.09.