James Thalacker, an analyst from BMO Capital, maintained the Buy rating on PG&E. The associated price target remains the same with $23.00.
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James Thalacker has given his Buy rating due to a combination of factors that suggest a positive outlook for PG&E’s stock. The recent legislative amendments to SB254, which incorporate significant provisions from Governor Newsom’s draft, are seen as a positive step towards enhancing the durability of the state’s wildfire fund. This includes a potential capital infusion of $18 billion and a reduction in the CapEx disallowed from equity rate base calculations from $15 billion to $6 billion. These measures are expected to provide reassurance to investors about the efficacy of the wildfire fund, especially as broader reforms are anticipated in 2026.
Additionally, PG&E’s shares are currently perceived to be undervalued, despite strong earnings per share and rate base growth. The potential for multiple expansion is supported by several catalysts, including an upgrade to investment grade and a growing dividend yield. These factors, combined with continued execution, are expected to drive further growth and make PG&E an attractive investment opportunity.
Thalacker covers the Utilities sector, focusing on stocks such as American Electric Power, Duke Energy, and NextEra Energy. According to TipRanks, Thalacker has an average return of 13.7% and a 66.94% success rate on recommended stocks.
In another report released on September 8, Citi also maintained a Buy rating on the stock with a $21.00 price target.