PG&E Corporation (PCG) PT Raised to $21 at Wolfe Research

Wolfe Research analyst Steve Fleishman raised the price target on PG&E Corporation (NYSE: PCG) to $21.00 (from $19.00) while maintaining a Outperform rating.

The analyst comments "We like PCG’s long-term story, with 9% rate base and at least 9% EPS growth 2026-30. Since CEO Patti Poppe's joined PCG, the company has largely executed on its operational plan and improved regulatory relations and engagement with policymakers. Importantly, PCG mitigated wildfire risk and is undertaking a large undergrounding effort. PCG sees its simple affordable model keeping bills at or below management's assumed inflation. The stock trades at one of the deepest discounts among peers, largely on the wildfire risk stemming from the SoCal fires and implications on the AB 1054 Wildfire Fund. With legislation to shore up AB 1054 and ultimately a comprehensive state solution to wildfire liability, the stock should narrow its deep discount. But the latter is expected next year. PCG's RB and EPS growth is among industry leaders. CA has constructive regulatory frameworks, including 4-year rate plans, decoupling, and several pass-through mechanisms. And PCG has improved its B/S, though remains below IG on rating agencies' wanting to see how SB 254 phase 2 progresses."

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