TXNM Energy initiated with a Sector Perform at Scotiabank

Scotiabank initiated coverage of TXNM Energy with a Sector Perform rating and $46 price target The firm is encouraged by the potential for a New Mexico regulatory turnaround story and agrees that upside to capex may be meaningful, particularly in Texas, but sees both regulatory environments as “riskier than average.” When coupled with TXNM’s “below-average” near-term earnings growth and a balance sheet “that isn’t top of its class,” the firm sees the stock’s valuation as reasonable.