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UBS analyst firm reiterated a Buy rating and $48.00 price target on Portland General Electric Company (NYSE:POR), currently trading at $41.20, following an investor meeting with the utility’s management. The stock trades near its 52-week low, with analyst targets ranging from $41 to $58. According to InvestingPro, three analysts have recently revised their earnings estimates upward for the upcoming period. The firm expressed a more positive view on the company’s request for proposal (RFP) procurements, noting that POR remains in negotiations with short-listed options for its 2023 procurement.
The company conveyed confidence that tariffs and supply disruptions would not materially impact its potential investment of $1.0-$1.2 billion. UBS subsequently lowered its estimate for potential disallowance to $100-$150 million from the previous $200-$300 million range, while maintaining a 2% valuation discount for conservatism.
Despite this conservative approach, UBS expects Portland General Electric to recover these costs. The firm anticipates another progress report during the utility’s second quarter earnings call in July.
Portland General Electric continues to experience significant growth in its service territory, particularly from the semiconductor industry and data centers. This growth contributes to potential upside to UBS’s forecast of 5% earnings per share growth rate.
The utility company serves customers in Oregon and has been working to expand its generation capacity while navigating regulatory requirements and economic conditions affecting its service area.
In other recent news, Portland General Electric reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.21, compared to the forecasted $1.14. However, the company’s revenue fell short, coming in at $928 million, below the expected $976.05 million. Additionally, Portland General Electric announced plans to restructure into a holding company, filing a notice with the Oregon Public Utilities Commission to create a non-operating corporate entity. This strategic move aims to enhance financial flexibility for future projects. UBS upgraded Portland General Electric’s stock rating from Neutral to Buy, setting a new price target of $50, citing a positive outlook despite concerns over renewable procurement costs. Analysts at UBS believe the company will manage to offset tariff-related costs, potentially narrowing the stock’s valuation discount. Meanwhile, KeyBanc maintained a Sector Weight rating on the company, reflecting a neutral stance on the stock’s current valuation. These developments indicate significant strategic planning and financial adjustments by Portland General Electric.
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