Goldman Sachs Downgrades Pinnacle West Capital (PNW) to Sell; Sees Slow EPS/Dividend Growth

Goldman Sachs downgraded Pinnacle West Capital (NYSE: PNW) from Neutral to Sell with a price target of $52.00 (from $50.00).

The firm cited: (1) slowing EPS growth after 2012, (2) below-average dividend growth, and (3) relative valuation after recent outperformance. Regulatory lag between rate cases and challenging electric demand trends will drive only a 3.5% EPS CAGR from 2012-2014 versus other Regulated Utilities at 6%.

Goldman updates 2012-2014 EPS estimates for PNW to $3.44/$3.58/$3.69 from $3.45/$3.62/$3.67.

For an analyst ratings summary and ratings history on Pinnacle West Capital click here. For more ratings news on Pinnacle West Capital click here.

Shares of Pinnacle West Capital closed at $53.71 yesterday.

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