The firm said it lowered its rating on the energy company as it feels "the western portion of [the Eastern grid organizer] PJM will be more leveraged to power price improvements versus the east."
"Most of the planned new construction is in PJM East where PSEG power plant's are located and most of the scheduled coal plant retirements are in the western part of PJM," the company continued.
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Jefferies cut its price target on Public Service Enterprise to $41 from $39.
Separately, TheStreet Ratings team rates PUBLIC SERVICE ENTRP GRP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PUBLIC SERVICE ENTRP GRP INC (PEG) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."