PG&E, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Paul Zimbardo CFA from Jefferies maintained a Buy rating on the stock and has a $20.00 price target.
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Paul Zimbardo CFA has given his Buy rating due to a combination of factors that highlight PG&E’s favorable position compared to its peers. One of the main reasons is PG&E’s lower financial exposure to wildfire risks, which is a significant concern for utilities operating in California. Additionally, PG&E is expected to achieve a 9% compounded annual growth rate in earnings per share through 2030, demonstrating strong growth potential. The company’s conservative earnings guidance and lack of need for equity issuance further enhance its financial stability.
Moreover, PG&E is trading at a substantial discount to its peers, with a projected 50% lower price-to-earnings ratio by fiscal year 2028. This valuation, combined with the company’s strategic focus on buybacks and a more durable financial profile, makes it an attractive investment. While uncertainties remain regarding California’s legislative environment, PG&E’s robust fundamentals and higher earnings growth rate position it well to navigate potential challenges. Overall, these factors contribute to the Buy rating, reflecting confidence in PG&E’s ability to deliver shareholder value.
In another report released on September 30, Barclays also maintained a Buy rating on the stock with a $21.00 price target.