PNM Resources price target lowered to $43 from $50.30 at RBC Capital

RBC Capital analyst Shelby Tucker lowered the firm’s price target on PNM Resources (PNM) to $43 from $50.30 and keeps a Sector Perform rating on the shares. The firm is updating its model following the release of a final rate case decision in New Mexico and now that the merger with Avangrid (AGR) has fallen through, the analyst tells investors in a research note. As a standalone company, the focus comes back to the regulatory environment in New Mexico, the firm states, adding it would be hesitant to jump into the name immediately despite the discount valuation given a new GRC filing in 2024 and concerns about regulatory risk.