Mizuho cuts PG&E stock price target to $20, maintains Outperform

Published 25/04/2025, 12:58
Mizuho cuts PG&E stock price target to $20, maintains Outperform

On Friday, Mizuho (NYSE:MFG) Securities adjusted its price target for PG&E Corporation (NYSE:PCG), reducing it to $20.00 from the previous target of $23.00. Despite the price target reduction, the firm kept its Outperform rating on the utility company’s shares.

PG&E reported its first-quarter earnings for 2025, posting an adjusted earnings per share (EPS) of $0.33, which slightly missed the consensus estimates of $0.34. The focus among investors remains on the developments around AB 1054, which pertains to California’s legislative approach to wildfire costs and liabilities. Additionally, there is anticipation for the outcomes of other regulatory proceedings in California, including the Cost of Capital and an expected General Rate Case (GRC) filing.

Mizuho reiterated its estimates and the Outperform rating for PG&E, citing the value seen in the company’s shares. PG&E’s stock has been trading at a substantial discount when compared to its peers, especially following the sell-off earlier in the year that occurred as a result of the wildfires in Southern California.

The firm’s analyst acknowledged the strength of PG&E’s fundamental updates but also noted that the investor attention is predominantly on the legislative solution for AB 1054, which is beyond the direct influence of PG&E. The revised price target of $20 reflects the current market multiples, as per Mizuho’s analysis.

In other recent news, PG&E Corporation reported its first-quarter 2025 financial results, which showed a minor miss in earnings and revenue expectations. The company posted an earnings per share (EPS) of $0.33, slightly below the forecasted $0.34, and revenue of $5.98 billion, which fell short of the anticipated $6.02 billion. Despite these results, PG&E reaffirmed its full-year EPS guidance of $1.48 to $1.52, indicating confidence in its financial trajectory. The company plans a $63 billion capital investment through 2028, focusing on operational efficiency and infrastructure improvements.

Additionally, PG&E is expanding its data center pipeline, which could potentially reduce customer rates. The company has updated its data center project pipeline from 5.5 gigawatts to 8.7 gigawatts, with significant engineering projects underway. These developments are expected to contribute to customer savings and align with PG&E’s goal to stabilize bills, holding increases at or below inflation. The company continues to focus on wildfire risk mitigation and regulatory compliance, which are crucial for maintaining investor confidence and operational stability. PG&E’s recent performance and strategic investments have been acknowledged by Moody’s, which upgraded the utility’s issuer credit rating to investment grade.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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