Pinnacle West initiated with a Market Perform at BMO Capital

BMO Capital initiated coverage of Pinnacle West (PNW) with a Market Perform rating and $95 price target The firm sees Pinnacle West shares as having the potential to become a core utility holding. However, first the company must successfully navigate the next Arizona rate case, the analyst tells investors in a research note. BMO believes regulatory execution is critical over the next 12-18 months, which will likely limit multiple expansion in the interim.