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Tuesday, PG&E Corporation (NYSE:PCG) shares maintained a Neutral rating with a steady price target of $19.00, as confirmed by UBS analysts. The commentary from the firm centered on PG&E’s presentation at the American Gas Association conference, which underscored several key points about the utility company’s future plans and financial health.
PG&E outlined that residential customers can expect electric and gas rates to remain unchanged in 2027 compared to 2025. The company is also making strides towards achieving an investment-grade credit rating for its parent company. Another significant aspect of PG&E’s strategy is securing funding through a low-cost loan from the Department of Energy.
The utility provider also reported robust demand from data centers, with a pipeline totaling 8.7 gigawatts. Despite these positive developments, wildfire legislation continues to be a pivotal factor for PG&E. The company indicated during their first quarter investor call that they do not foresee any legislative progress until later in the session, which concludes on September 12.
PG&E’s stock valuation currently trades at 10.2 times UBS’s estimated earnings per share (EPS) of $1.76 for the year 2027. This valuation reflects the firm’s view of PG&E’s financial prospects, considering both the challenges and opportunities that lie ahead for the company.
In other recent news, PG&E Corporation reported its first-quarter 2025 financial results, revealing a slight miss in earnings per share (EPS) expectations. The company posted an EPS of $0.33, falling short of the forecasted $0.34. Revenue also came in below expectations at $5.98 billion, compared to 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.
In analyst updates, Guggenheim adjusted PG&E’s stock price target to $17.00, maintaining a Neutral rating, while Mizuho (NYSE:MFG) reduced its price target to $20.00 but retained an Outperform rating. Both firms highlighted the importance of legislative developments in California, particularly regarding wildfire costs and liabilities, as a key focus for investors. PG&E’s management has emphasized its commitment to capital investment, projecting $63 billion through 2028, and operational efficiency, with significant savings reported in operations and maintenance costs over the past two years.
Additionally, PG&E’s management has focused on shifting the narrative towards customer value and avoiding double-digit revenue increase requests. The company’s strategic emphasis on expanding its data center capabilities is also seen as a potential driver for reducing customer rates. These developments reflect PG&E’s efforts to navigate regulatory challenges and enhance its growth prospects.
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