UPDATE: Jefferies Raises PT on Progress Energy to $47.50 (PGN)

Jefferies is out with its report today on Progress Energy (NYSE: PGN), raising its price target from $45.50 to $47.50.

In a note to clients, Jefferies writes, "Our price target of $47.50 (revised from $45.50) is based on the merger offer price. Under the agreement, Progress shareholders would receive 2.6125 shares of Duke Energy stock for each share of Progress Energy they own. Based on Friday's closing price of $45.70, our price target results in 12-month total return potential of 9.3% including the current yield of 5.4%."

Jefferies maintains Hold on PGN.

Shares of PGN closed Friday at $45.70, down 0.48% from Thursday's close.