Goldman Sachs Reiterates Neutral Rating on El Paso Electric on Management Meetings

In a report published on Thursday, Goldman Sachs analyst Neil Mehta reiterated a Neutral rating and a price target of $35 on

. In the report, Goldman Sachs stated, "We highlight several key takeaways from the investor meetings. (1) EE remains confident it can achieve a 2.0%-2.5% weather-normal demand growth rate, despite a slowdown in population growth at Fort Bliss. (2) Authorized returns in Texas continue to face pressure, including a recent ALJ recommendation of 9.65% in AEP's SWEPCO rate case, a potential long-term headwind. (3) EE does not expect to issue any equity for the foreseeable future. (4) The company's relationship with El Paso City Council continues to improve under Tom Shockley's leadership." El Paso Electric closed on Wednesday at $35.44.