Mizuho Downgrades Pinnacle West Capital (PNW) to Neutral

Mizuho analyst Tony Crowdell downgraded Pinnacle West Capital (NYSE: PNW) from Outperform to Neutral with a price target of $90.00 (from $102.00).

The analyst comments "We are downgrading PNW to Neutral from Outperform. While PNW's ~5% load growth is supported by large manufacturing facilities and data centers, an update of our forecast model shows regulatory lag will eat away at most of the accretion until 2028/29. Our previous forecast assumed that regulatory lag/under-earning would be minimal in 2027 but on revised numbers we now see that as a 2028/29 event. Although the stock has been a YTD laggard (down 2% vs reg. Utes avg); we believe with lower estimates on the horizon, shares will see more pressure as investors look towards 2026. Management is to provide 2026 guidance on the 3Q call, and we see a midpoint of ~$4.55, which compares to consensus of $4.88. Additionally, our revised 2027 estimate of $5.47 is Street-low. We update our PT to $90 based on lower estimates and current P/E multiples."

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 $87.84 yesterday.

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