Duke Energy (NYSE:DUK) EPS Estimates Lowered by Jefferies (NYSE:JEF)

Jefferies (NYSE:JEF) lowered their EPS estimates on Duke Energy (NYSE:DUK) for 2011 and 2012, citing, in the case of 2012, assumptions that the Ohio ESP is replaced by another ESP negotiated around the middle of the best and worst case scenario.

"If the company chooses not file an ESP and there is no MRO approved by the end of 2011, we would expect that the current ESP would continue until the PUCO approves an MRO or an ESP. This may reduce the incentive of Duke management to submit an ESP filing and the PUCO cannot force the company to file an ESP," said Jefferies.

EPS estimates for 2011 and 2012 were lowered by $0.10 and $0.05, to $1.30 and $1.35.

Jefferies maintains a "Hold" rating on Duke Energy, which was trading at $17.61, up $0.06, or 0.34 percent, as of 11:55 AM EST. They lowered their price target in response to the lowered EPS estimates, from $18 to $17.50.