Ryan Levine, an analyst from Citi, maintained the Hold rating on TXNM Energy. The associated price target is $61.25.
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Ryan Levine has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for TXNM Energy. The company’s fundamentals appear strong, with significant investments in Permian transmission projects and potential earnings per share (EPS) improvements through the Texas Unified Tracker Mechanism (UTM). Additionally, the new pipeline by Energy Transfer could facilitate new gas generation in New Mexico, which presents a growth opportunity for TXNM.
However, there are some uncertainties that justify a cautious approach. The possible delay in the retirement of the Four Corners plant could pose a slight negative impact, as it might act as a temporary solution rather than a long-term strategy. Furthermore, while the current deal with Blackstone Infrastructure is expected to close at $61.25 per share, there is a risk that the deal might not go through, which would affect the stock’s valuation. These mixed factors contribute to the Hold rating, suggesting that while there are positive developments, potential risks remain.
Levine covers the Utilities sector, focusing on stocks such as PG&E, NRG Energy, and Consolidated Edison. According to TipRanks, Levine has an average return of 7.6% and a 63.54% success rate on recommended stocks.