Scotiabank Increases TXNM Energy Price Target to $55.00

On February 26, 2025, Scotiabank announced an increase in the price target for TXNM Energy (NYSE:TXNM) from $52.00 to $55.00 in their latest report. This new price target indicates a potential upside of 5.38% based on the stock's closing price prior to the announcement. Scotiabank has maintained a "sector perform" rating for this energy company.

In addition to Scotiabank's report, other analysts have also revised their ratings and price targets for TXNM Energy. For instance, Wells Fargo & Company raised its target for TXNM Energy from $49.00 to $53.00, assigning an "overweight" rating in a report dated November 26th. Meanwhile, Barclays lifted its price target from $46.00 to $52.00, also labeling the stock as "overweight" in its report on November 29th. Evercore ISI upgraded the stock from an "in-line" to an "outperform" rating, increasing the price target from $51.00 to $54.00 on February 11th. Lastly, Citigroup set its price target for TXNM Energy at $53.00, up from a previous $45.00, with a "neutral" rating given on December 12th.

Overall, TXNM Energy's stock is receiving mixed reviews from analysts, with two indicating a hold rating and four others endorsing a buy rating. According to reports from MarketBeat, TXNM Energy has an average rating of "Moderate Buy" and a consensus price target of approximately $52.83.

Recent Stock Performance

As of the last trading session on Monday, TXNM stock opened at $52.19. Over the past year, the stock has experienced a low of $35.35 and a high of $54.90. The company's market capitalization stands at $4.71 billion, with a price-to-earnings (P/E) ratio of 27.18. The price-to-earnings growth ratio is recorded at 6.12, and the stock has a beta of 0.40, indicating lower volatility compared to the broader market. Additionally, the company shows a debt-to-equity ratio of 1.80, a quick ratio of 0.27, and a current ratio of 0.36. The 50-day moving average is at $48.69, while the 200-day moving average stands at $45.74.

Earnings Overview

TXNM Energy recently released its quarterly earnings results on February 21st. The company reported an earnings per share (EPS) of $0.30, meeting analysts' expectations. During the same quarter, the total revenue reached $476.96 million, which fell short of the anticipated $496.05 million. The company recorded a net margin of 9.26% and a return on equity (ROE) of 9.69%. Analysts predict that TXNM Energy is likely to post an EPS of 2.73 for the current fiscal year.

Hedge Fund Activity

In recent months, several hedge funds have altered their positions in TXNM Energy. Notably, Wellington Management Group LLP acquired a stake worth about $64,046,000 in the fourth quarter. Similarly, California Public Employees Retirement System invested approximately $19,644,000 during the same timeframe. Franklin Resources Inc. purchased approximately $79,524,000 in new shares, while Nomura Asset Management Co. Ltd. added stakes worth around $48,000. Alliancebernstein L.P. also acquired a significant position in TXNM Energy, amounting to about $123,764,000. Currently, 91.68% of TXNM Energy's shares are held by hedge funds and institutional investors.

Company Background

TXNM Energy, Inc. operates through its subsidiaries to provide electricity and electric services across the United States. Its operations are primarily divided into segments: Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP). The PNM segment is engaged in generating, transmitting, and distributing electricity to its customers.

TXNM, Scotiabank, Energy