Jefferies Raises PT On OGE To $57

Jefferies has raised its price target on OGE Energy Corp. OGE from $53 to $57 based upon the strength of oil prices. Says Jefferies, in its report, “The principal driver for the increase in estimates is the strength of oil prices. Our previous estimates assumed oil prices between $90-95/bbl while our revised estimates are predicated on the forward curve for oil which is in the range of $103-109/bbl. We are increasing our 2011 EPS estimate by $0.20 to $3.25 based on a higher oil price which increases the earnings contribution from Enogex. Our previous estimate assumed $93/bbl while our revised estimate is forecasting $109/bbl oil.” Jefferies maintains its Buy rating on OGE. OGE closed at $50.61.