Wolfe Research raises PG&E stock price target to $21 on growth outlook

Investing.com - Wolfe Research raised its price target on PG&E Corporation (NYSE:PCG) to $21.00 from $19.00 on Friday, while maintaining an Outperform rating on the utility company’s stock.

The research firm cited PG&E’s long-term growth potential, noting the company’s projected 9% rate base growth and at least 9% earnings per share growth from 2026 to 2030. Wolfe Research also highlighted operational improvements under CEO Patti Poppe’s leadership, including better regulatory relations and enhanced engagement with policymakers.

PG&E has made significant progress in mitigating wildfire risk and is implementing a major undergrounding effort, according to the research note. The company’s "simple affordable model" aims to keep customer bills at or below management’s assumed inflation rate.

The stock currently trades at one of the deepest discounts among peers, primarily due to wildfire risk concerns stemming from Southern California fires and implications for the AB 1054 Wildfire Fund. Wolfe Research expects legislation to strengthen AB 1054 and eventually deliver a comprehensive state solution to wildfire liability, though the latter is anticipated next year.

PG&E’s rate base and earnings growth rank among industry leaders, with California offering constructive regulatory frameworks including four-year rate plans, decoupling, and several pass-through mechanisms, the research firm noted. The company has also improved its balance sheet, though it remains below investment grade as rating agencies await progress on SB 254 phase 2.

In other recent news, PG&E Corporation announced its financial results for the third quarter of 2025. The company reported an earnings per share (EPS) of $0.50, which exceeded analysts’ expectations of $0.43. This represents a 16.28% surprise in EPS performance. However, PG&E’s revenue for the quarter was $6.25 billion, falling short of the anticipated $6.41 billion. Despite the revenue miss, the earnings beat has been a focal point for investors. No major mergers were reported in the recent updates. Analysts’ assessments of the company’s stock were not mentioned in the latest reports. These developments highlight PG&E’s recent financial performance and investor reactions.

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