Update: Jefferies Lowering Price Target On PNM Resources

Jefferies & Co. is lowering its price target on shares of PNM Resources PNM to $16 from $16.50, but it keeps its Hold rating on shares. In a note to clients, Jefferies writes, "We are increasing our 2011 EPS estimate by $0.05 to $0.80 to reflect an expected implementation of higher electric rates in August 2011. Our revised estimate is at the low end of the company's guidance range of $0.80-$0.92. PNM has previously stated that it would expect to earn within its guidance range if new rates were implemented by August 1, 2011. We are increasing our 2012 EPS estimate by $0.05 to $1.20 based on higher assumed retail margins at the company's First Choice subsidiary. We are reducing our 2013 EPS estimate by $0.10 to $1.20 based on our assumption that the additions rider is denied by the NMPRC in its final order." Shares of PNM closed at $16.16 yesterday.