Jefferies lowers Pinnacle West Capital stock price target to $95 from $100

Investing.com - Jefferies has reduced its price target on Pinnacle West Capital (NYSE:PNW) to $95.00 from $100.00 while maintaining a Hold rating on the stock. The utility company, currently trading at $93.71 and near its 52-week high of $96.50, offers a 3.82% dividend yield and has maintained dividend payments for 33 consecutive years. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The firm cited Pinnacle West’s strong quarterly performance and raised revenue guidance, which was partially offset by higher expense assumptions.

Loan growth for the company was solid but fell slightly below forecasts, leading to a modest downward revision at the high end of guidance.

The Synovus merger remains on schedule for an early first-quarter 2026 closing date, with Jefferies noting that despite concerns about potential disruptions, hiring momentum remained strong.

The company added 35 relationship managers in the third quarter, matching its pre-merger pace, while achieving 93% associate retention during the period.

In other recent news, Pinnacle West Capital reported its Q2 2025 earnings with an earnings per share (EPS) of $1.58, slightly missing the forecast of $1.60. However, the company’s revenue surpassed expectations, reaching $1.36 billion. BMO Capital raised its price target for Pinnacle West Capital to $98 from $96, maintaining a Market Perform rating, despite noting a year-over-year EPS decline of approximately 10%. Jefferies adjusted its price target for Pinnacle West Capital twice, initially lowering it to $109 and later raising it to $113, maintaining a Buy rating both times. Jefferies cited the company’s potential for a structural earnings inflection starting in 2028 as a reason for their optimism. Mizuho downgraded Pinnacle West Capital from Outperform to Neutral, reducing the price target to $90 due to concerns about regulatory lag impacting expected growth until 2028/29. Despite these varied assessments, Pinnacle West Capital’s approximately 5% load growth, supported by large manufacturing facilities and data centers, remains a point of interest. These developments provide investors with a range of perspectives on Pinnacle West Capital’s future performance.

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