Credit Suisse Upgrades PG&E Corporation (PCG) to Outperform, Shares Are Cheap Compared to Peers

Credit Suisse upgraded shares of PG&E Corporation (NYSE: PCG) to an Outperform rating from its previous rating of Neutral and is raising its price target from $45 to $50.

The firm reports that the upgrade is to due its view that the well identified headwinds are overstated at current price with limited fundamental downside.

Credit Suisse believes that shares of PCG are currently trading cheap to its peers considering the company's 7%+ rate base growth, earnings visibility with decoupling, forward rates and cost of capital set through 2012, a 2013 ROE reset to 10.5%, limited risk to Diablo Canyon, and realistic outcomes from San Bruno are not that bad.

The firms current 2011-2013 EPS estimates are set at $3.73, $3.92, and $3.74.

For more ratings news on PG&E Corporation click here and for the rating history of PG&E Corporation click here.

Shares of PG&E Corporation closed at $44.86 yesterday.

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