Deutsche Bank Upgrades Pacific Gas & Electric To Buy, $52 PT
In a research report issued today, Deutsche Bank analyst Jonathan Arnold upgraded shares of Pacific Gas & Electric Co. (NYSE:PCG) to Buy from Hold, with a price target of $52.00.
Arnold observed, “We’ve been cautious on PCG since downgrading in late March in the wake of yet another legal/regulatory San Bruno-related headwind and lack of compelling valuation. Given an improved rate base and outlook disclosures on yesterday’s call, we now see forward earnings power up ~$0.15 versus our prior assumptions. With the stock having lagged an increasingly pricey regulated utility peer group, most estimates already reflecting downside case San Bruno outcomes and earnings power marked up, we see an attractive re-entry point and a decent value case for the stock even using our well below-market target regulated multiple (15x 2016E). Upgrade to Buy. ”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Arnold has a total average return of 8.0% and a 79.6% success rate. Arnold has an -0.1% average return when recommending PCG, and is ranked #506 out of 3350 analysts.