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Investing.com - BMO Capital raised its price target on PG&E Corporation (NYSE:PCG) to $25.00 from $23.00 on Tuesday, while maintaining an Outperform rating on the utility company’s stock.
The firm revised its third-quarter 2025 earnings estimate to $0.41 per share, compared to $0.37 in the same quarter of 2024, following lighter first-half 2025 earnings. BMO’s full-year 2025 estimate remains unchanged at $1.49 per share.
BMO expects PG&E to introduce fiscal year 2026 guidance during its upcoming earnings call, along with an update on the company’s data center pipeline.
Wildfire reform is anticipated to remain a central topic for PG&E following Senate Bill 254, with initial high-level CCR (Climate Change Response) recommendations expected in early November.
The price target increase stems from BMO’s updated sum-of-the-parts and mark-to-market valuation methodology for the California-based utility provider.
In other recent news, PG&E Corporation has completed a $2 billion sale of first mortgage bonds, with maturities extending through 2055. This offering includes $400 million of bonds due in 2028, $850 million due in 2032, and $750 million due in 2055, as reported in their SEC filing. Fitch Ratings has upgraded PG&E to investment grade ’BBB-’ from ’BB+’, acknowledging the company’s progress in mitigating wildfire risks and the support provided by California’s Senate Bill 254. The bill has established an $18 billion fund to address catastrophic wildfire liabilities for utilities. In collaboration with Energy Vault, PG&E has also completed the Calistoga Resiliency Center, a hybrid microgrid combining hydrogen fuel cells and lithium-ion batteries. This system is designed to provide power during Public Safety Power Shutoffs, serving around 1,600 customers in Calistoga. Additionally, Jefferies has adjusted its price target for PG&E to $20 from $22 while maintaining a Buy rating, citing a reduced financial wildfire risk and a projected 9% annual EPS growth rate through 2030.
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