On Tuesday, BofA Securities adjusted its outlook on Pinnacle West Capital (NYSE:PNW), increasing the price target to $84.00 from the previous $77.00. The firm has sustained its Buy rating for the utility company following a robust first-quarter earnings report.
Pinnacle West Capital outperformed expectations with its Q1 2024 earnings, posting $0.15 per share, which surpassed both BofA and consensus estimates that predicted $0.03 and $(0.03) per share, respectively. This performance has led BofA Securities to revise its 2024 earnings per share (EPS) estimate for the company upward to $4.84 from $4.82.
The company also confirmed its 2024 EPS guidance range of $4.60 to $4.80 per share. Additionally, Pinnacle West Capital has reiterated its commitment to a long-term EPS growth target of 5%-7% and its capital investment plan, signaling a stable growth trajectory.
The analyst's confidence in the company's prospects is further evidenced by the maintained EPS estimates for the years 2025 and 2026, which stand at $4.99 and $5.59 per share, respectively. This steady outlook suggests a continued positive performance for Pinnacle West Capital in the medium term.
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