Wunderlich Securities On POM Outlook

Wunderlich Securities has issued a report on the outlook for Pepco Holdings POM. According to Wunderlich, “On top of these regulatory challenges, the MAPP transmission project is also likely to be delayed, and management expects to issue $250-$350 million of new equity in 2012. We are reducing our 2011 and 2012 EPS forecasts to $1.16 and $1.23 and introducing a 2013 EPS estimate of $1.25. All in all, we expect the stock to continue to struggle, although the current 5.8% dividend yield is likely to provide downside support.” POM is rated Hold and has an $18 Price Target. POM closed at $18.55 a share on Friday.