Deutsche Bank Downgrades PG&E Corporation (PCG) to Hold

Deutsche Bank downgraded PG&E Corporation (NYSE: PCG) from Buy to Hold with a price target of $54.00 (from $52.00) on outperformance, lack of SB decisions.

Analyst Jonathan Arnold comments, "We are downgrading PCG to Hold from Buy. PCG has outperformed the sector by nearly 9% since late October, leaving limited absolute upside to our new $54 price target. Further, it is now clear that the California PUC will not issue final decisions in the San Bruno investigations by year-end. Previously, our view had been that the CPUC would feel some pressure to resolve the cases by then. Absent that, it is not clear to us when we should expect CPUC action given the open-ended nature of the cases. The other CPUC issues (ex parte violation disclosures, parties seeking extensive email disclosures from the company, the GT&S case) remain pending as well in addition to the federal criminal case. With PCG’s recent performance, we feel that we would need to support a premium valuation to maintain our Buy rating, and given the issues mentioned above, we do not feel compelled to push for a premium at this time. We continue to believe that ultimately PCG can re-gain its premium valuation, but that path continues to be uncertain and potentially lengthy."

For an analyst ratings summary and ratings history on PG&E Corporation click here. For more ratings news on PG&E Corporation click here.

Shares of PG&E Corporation closed at $51.94 yesterday.

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