UPDATE: Williams Capital Group Downgrades TECO Energy to Hold on Coal Outlook

Williams Capital Group reduced its rating on TECO Energy (NYSE: TE) from Buy to Hold and reduced its price target from $21 to $19.

Williams Capital Group said, "TECO reported lower Q212 recurring and GAAP income and EPS of $73.1 million, $0.34 per share, down modestly compared with $77.5 million, $0.36 per share in Q211. A 1.2% increase in average utility customers and better TECO Guatemala and Peoples Gas results were unable to offset lower results at TECO Coal, milder weather, and higher electric utility operating expenses. TECO Coal results continue to be volatile due to the weak coal markets. Management reduced 2012 EPS guidance as a result of milder temperatures and a reduction in expectations for TECO Coal. "

TECO Energy closed at $17.98 on Friday.