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PNM Resources (NYSE:PNM) edges higher in Tuesday's trading as Mizuho upgraded the stock to Buy from Neutral with a $50.30 price target, saying it still believes the Avangrid (AGR) acquisition deal will go through despite a push by New Mexico regulators to block the deal.
Mizuho said that following a New Mexico Supreme Court appeal hearing earlier this month, it believes the merger case with Avangrid (AGR) will be remanded back to the state's Public Regulation Commission in late December.
Ultimately, the analysts believe there is still motivation from PNM, Avangrid and most parties in the state to get the deal across the finish line, with their revised timeline for the merger approval at around June 2024.
If the deal falls apart, Mizuho said PNM's (PNM) standalone value is ~$41 or 14x, a small-cap group average P/E multiple, on estimated 2025 earnings estimate of $2.92/share.