- PNM Resources (PNM +1.2%) is upgraded to Buy from Hold with a $30.50 price target, up from $29, at Jefferies, which says shares are trading at a 10% discount to its 2018 small cap regulated utility group average multiple.
- Jefferies believes PNM will receive approval in June or July for its retrofit technology stipulation agreement which deals with the utility's plan to operate the San Juan coal-fired power plant, which will maintain PNM's capex forecast and its 7%-9% EPS growth through 2019.
- The firm believes New Mexico regulators will not deny the stipulation agreement, which would result in PNM retiring all its San Juan units, because of high unemployment in the state.