J.P. Morgan Says PNM Resources Remains Overweight On Improved Earnings

In a report published by J.P. Morgan, it maintains its OW rating on PNM Resources PNM despite a 10% move in the stock over the past two days, as it believes the shares remain undervalued relative to peers.

J.P. Morgan said that it believes management’s discussion of its 2011 outlook and key drivers beyond that give investors improved earnings visibility and a clear path to regulatory recovery. “Additionally, we believe PNM’s regulatory risk profile has improved significantly with the pending stipulation in the NM rate case, further bolstering our earnings recovery thesis. We reiterate our Overweight rating on PNM.”

PNM Resources closed yesterday at $14.53.