PG&E Corporation (PCG) Tied to Zogg Fire, Insurance Likely Covers Damages - UBS

UBS analyst, Daniel Ford, reiterated a Buy rating and $15.00 price target on PG&E Corporation (NYSE: PCG) after Cal Fire announced that their review of the September 2020 Zogg fire determined that the cause was a pine tree coming into contact with PCG wires. The company issued a release stating that they have not seen the Cal Fire report or data and that they will continue to cooperate.

The analyst stated "PCG is likely covered by insurance and has taken a charge for the low-end of the probabilistic range of exposure. If PCG is responsible for the Zogg fire it does not appear to advance the company to the second level of enhanced oversight within the CPUC framework. Please see "CPUC Letter to PCG" At year-end 2020 the company had recorded a loss of $275M before insurance and a $56M net charge. Our estimate for the Zogg fire gross damage is $312M up to $481M."

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 $10.92 yesterday.

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