Gabelli Raises Earnings Estimates On El Paso Electric Co (EE)

Gabelli & Co. is raising its earnings estimates on shares of El Paso Electric Co EE. It has a Buy rating on shares. In a note to investors, Gabelli & Co. writes, "We are raising our 2011, 2012 and 2013 EPS estimates to $2.20, $2.35and $2.50, from $2.15, $2.30 and $2.45 respectively, following 1Q earnings results. Lower results were expected due to revised seasonal rates that are now lower during winter months (November-April) and higher during the summer months (May-October) as well as an increased customer-sharing (90% vs. 25%) mechanism of off-system sales margins. Our 2011 and 2012 PMV estimates are $38 and $39 per share, based upon a 9.0X EBITDA multiple, in line with the recent takeover announcements." Shares of EE closed at $30.50 yesterday.