Jefferies Rates PNM Resources At Underperform (PNM)

Jefferies & Co. has an Underperform rating and a $10 price target on shares of PNM Resources, Inc. PNM. In a note sent to clients, Jefferies writes, "We are increasing our 4Q10 EPS estimate by $0.10 to $0.05 due to the expected contribution of First Choice, the company's retail supply subsidiary. The company indicated in a December 20, 2010 regulatory filing that it has re-engaged in settlement discussions with the NMPRC staff and the Attorney General. The company hopes to file a stipulated settlement no later than January 20, 2011. We are increasing our 2010 EPS estimate by $0.05 to $0.95 based on the stronger expected contribution from First Choice. Our revised estimate is above the high end of the company's guidance range of between $0.83-$0.90. We are maintaining our 2011 EPS estimate of $0.55. The company has not yet provided earnings guidance for 2011. We are maintaining our 2012 EPS estimate of $0.90." Shares of PNM closed at $13.21, a loss of 3 cents.