) to outperform.
The energy services company selected C. John Wilder as president and CEO. Analyst Michael Worms says he believes the management change is positive, and relieves a certain amount of uncertainty that has overhung TXU shares for some time. He notes as CFO of Entergy, Wilder was among the most-respected senior managers in the utility space, and is an excellent choice for TXU.
Worms finds TXU attractive on a valuation basis, with the stock trading at a 14% discount to his industry average multiple. He believes the discounted valuation belies TXU's much improved position within the utility sector. He's keeping the $2.10 2004 earnings per share estimate, and keeping the $2.20 2005 earnings per share. He upped the $24 target to $29.