Pinnacle West Capital stock price target raised to $98 by BMO Capital

Published 07/08/2025, 13:34
Pinnacle West Capital stock price target raised to $98 by BMO Capital

Investing.com - BMO Capital has raised its price target on Pinnacle West Capital (NYSE:PNW) to $98.00 from $96.00 while maintaining a Market Perform rating on the stock. Currently trading at $92.56, InvestingPro analysis indicates the stock appears overvalued, with a P/E ratio of 19.2x and a PEG ratio of 2.1x.

The utility company reported earnings per share of $1.58, slightly below BMO Capital and consensus estimates of $1.59. Year-over-year results declined by $0.18 or approximately 10%, though BMO noted these results were consistent with management’s expectations. The $11.05 billion market cap utility has maintained its position as a reliable dividend payer, having raised dividends for 13 consecutive years.

Following a strong start to the year, Pinnacle West management indicated they expect 2025 results to fall in the top half of their $4.40-4.60 guidance range. This compares to current BMO and consensus estimates of $4.54.

Management reaffirmed its $9.66 billion capital plan for 2024-2027, which continues to support 6-8% rate base growth and 5-7% EPS growth guidance, based on the original 2024 midpoint.

BMO Capital’s updated price target reflects adjustments to their estimates, while the firm maintained its Market Perform rating on Pinnacle West Capital stock. For deeper analysis, including comprehensive valuation metrics and growth indicators, investors can access the detailed Pro Research Report available on InvestingPro.

In other recent news, Pinnacle West Capital Corp reported its Q2 2025 earnings, showing mixed results. The company posted an earnings per share (EPS) of $1.58, which slightly missed the analyst forecast of $1.60. However, revenue came in at $1.36 billion, surpassing expectations. These developments highlight the company’s ongoing financial performance amid broader market conditions. The earnings report reflects cautious investor sentiment as the revenue exceeded projections, despite the EPS shortfall. No major mergers or acquisitions were reported for Pinnacle West during this period. Analyst firms have not made any recent upgrades or downgrades to Pinnacle West’s stock. The company’s financial results continue to attract attention from investors and analysts alike.

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