Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Jefferies downgraded TXNM Energy (NYSE:TXNM) from Buy to Hold while raising its price target to $61.25 from $58.00 on Monday. The $6 billion utility company is currently trading near its 52-week high of $57.42, with InvestingPro data showing remarkably low price volatility with a beta of just 0.07.
The downgrade comes as Jefferies sees limited upside potential beyond the Blackstone all-cash merger price of $61.25 per share, despite remaining confident in the merger approval process. TXNM has demonstrated strong dividend performance, having raised payouts for 14 consecutive years, with a current yield of 2.86%.
Jefferies noted that merger applications outline net benefits and credits, providing a good starting point, and highlighted that TXNM has engaged with stakeholders early in the process.
The firm updated its estimates based on year-to-date 2025 results and financing activities, with the focus now shifting to the regulatory review process.
Jefferies indicated that investors should watch for Texas conclusion as early as December, while New Mexico hearings are scheduled for May 2026, with a stipulation deadline in March.
In other recent news, TXNM Energy has announced its quarterly dividend of $0.4075 per share, payable on November 14, 2025, to shareholders of record as of October 24, 2025. The company has also repaid and terminated a $500 million term loan agreement with Wells Fargo Bank, concluding the arrangement as per its terms. Additionally, Public Service Company of New Mexico, a subsidiary of TXNM Energy, declared a quarterly dividend of $1.145 per share on its 4.58 percent series of cumulative preferred stock, payable on October 15, 2025.
In a significant development, TXNM Energy filed regulatory applications for its proposed acquisition by Blackstone Infrastructure, seeking approval from multiple regulatory bodies. The company has also entered into a $200 million at-the-market equity distribution agreement with several financial institutions, allowing for the sale of common stock through various methods, including direct sales on the New York Stock Exchange. These recent developments reflect TXNM Energy’s ongoing financial and strategic activities.
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