TSX gains after CPI shows US inflation rose 3%
Investing.com - BMO Capital raised its price target on Pinnacle West Capital (NYSE:PNW) to $99.00 from $98.00 on Monday, while maintaining a Market Perform rating on the utility company’s stock. The stock, currently trading at $93.15 with a market capitalization of $11.1 billion, appears slightly overvalued according to InvestingPro Fair Value metrics.
The research firm cited favorable weather conditions versus normal patterns continuing through the quarter, positioning the company well for the year. The utility provider has demonstrated stability with a 13-year streak of dividend increases and currently offers a 3.84% dividend yield.
Pinnacle West is scheduled to report its third-quarter 2025 financial results on November 3, with BMO expecting the company to report earnings per share in line with expectations.
BMO noted that investor focus will likely remain on Pinnacle West’s upcoming 2026 guidance and refreshed capital plan rather than current results.
The firm’s analysts observed that following "material share price underperformance over the past couple months," minimal growth expectations for 2026 appear to be already factored into the market.
In other recent news, Pinnacle West Capital reported earnings per share of $1.58, which was slightly below the consensus estimate of $1.59. Despite this, the results aligned with management’s expectations, according to BMO Capital. Jefferies has made several adjustments to Pinnacle West’s stock price target, with one instance lowering it to $95 while maintaining a Hold rating, and another raising it to $113, citing the company’s positioning for a structural earnings inflection starting in 2028. Mizuho downgraded Pinnacle West’s stock to Neutral from Outperform, reducing the price target to $90 due to concerns over regulatory lag affecting expected accretion until 2028/29. Meanwhile, BMO Capital increased its price target to $98, maintaining a Market Perform rating. Jefferies also adjusted its price target to $109, maintaining a Buy rating, again citing the anticipated earnings inflection in 2028. These recent developments reflect varying perspectives on Pinnacle West’s financial outlook and strategic positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.