Zacks Investment Research downgraded shares of Pepco Holdings Inc. (POM) from NEUTRAL to UNDERPERFORM on March 22, 2013, with a target price of $19.00.
We have lowered our recommendation on Pepco Holdings to Underperform from Neutral as its performance in the fourth quarter and full year were lower-than-expected primarily due to lower retail energy supply and a challenging energy services market. Besides, decisions on some rate cases in 2012 were disappointing. Pepco Holdings still has a few pending rate cases and, since the outcome of the same is uncertain, visibility on 2013 performance is low. The company decided to invest $5.9 billion in the electric system over the next five years to better serve its customers. However, if the company fails to recover the same through constructive regulatory outcomes, future growth investment of the company might be jeopardized.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Pepco Holdings Inc. (POM),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment