UPDATE: Wunderlich Securities Color On POM Target Increase

Wunderlich Securities, which raised its PT on shares of Pepco Holdings, Inc. (NYSE: POM), is providing some color on the stock.

“POM reported 1Q EPS of $0.27 versus $0.12 a year ago and our estimate of $0.19,” Wunderlich Securities writes. “The better-than-expected results were driven by weather, income tax adjustments, and better holding company and unregulated results.

“As expected, recent rate increases had a significant impact on earnings. However, we note that a large portion of the recent rate increases will be realized in the first half of 2011 (see Figure 1). We are increasing our 2011 and 2012 EPS estimates to $1.24 and $1.31. With weather benefiting the second half of 2010 by $0.07 per share, POM has harder comparisons in the second half of 2011.”

Pepco Holdings closed Friday at $19.55.