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Investing.com - UBS maintained its Neutral rating and $19.00 price target on PG&E Corporation (NYSE:PCG) following a California Public Utility Commission (CPUC) decision on the utility’s capital cost caps.
The CPUC increased PG&E’s capital cost caps for energization spending by $1.47 billion compared to previously authorized levels, though this increase was less than what had been included in the proposed decision.
The capital increases are not currently included in PG&E’s plan, but UBS expects the company might extend the duration of its spending or re-prioritize projects to accommodate the changes.
Despite the increased capital cost caps, UBS does not anticipate PG&E will need to issue additional equity to fund the expanded spending authorization.
The investment firm is awaiting further guidance from PG&E and monitoring potential wildfire and ratebase securitization legislation, with the California legislative session scheduled to end September 12, 2025.
In other recent news, PG&E Corporation reported its financial results for the second quarter of 2025, which did not meet analysts’ expectations. The company announced earnings per share (EPS) of $0.31, falling short of the projected $0.34. Revenue was also lower than anticipated, totaling $5.9 billion against the expected $6.26 billion. This financial performance highlights a challenging period for PG&E, as the results were below market forecasts. Following these developments, analysts have been evaluating the company’s financial health and future prospects. Although specific analyst upgrades or downgrades were not mentioned, such assessments often influence investor sentiment. These recent developments underscore the importance of monitoring PG&E’s financial performance and market reactions.
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