UPDATE: Credit Suisse Downgrades Pinnacle West Capital (PNW) to Neutral
- Wall Street ends week positively; S&P 500, Dow hit record highs
- Bitcoin (BTC) Drops 3% as Turkey Bans Cryptocurrency Payments Citing Lack of Regulatory Supervision
- Morgan Stanley (MS) Archegos-Related Loss Appears to be $911M
- Dollar at 4-week low on retreating Treasury yields
- J&J (JNJ) Privately Asked Rival Covid-19 Vaccine Makers to Inspect Clotting Risks, AstraZeneca (AZN) Said Yes but Pfizer (PFE) and Moderna (MRNA) Declined - Report
Credit Suisse analyst Michael Weinstein downgraded Pinnacle West Capital (NYSE: PNW) from Outperform to Neutral with a price target of $81.00 (from $86.00).
The analyst comments "We are downgrading PNW to Neutral (from OP) given a slower rollout of renewable capex through the roll forward to 2023 as management looks to reduce potential rate impact by delaying new projects so that the timing of cost recovery better coincides with expected fossil fuel savings. While the company continues to aggressively target 65% clean energy by 2030 with 45% renewable energy and no coal by 2031, the plan appears more back-end loaded in the coming decade. PNW projected ratebase growth through 2023 now at ~6% CAGR off 2019 base (vs prior 6%-7% off 2018). The projected ratebase of $12.9B for 2023 is where we expected the company to be at 2022 under prior planning, with the ~$700M reduction from prior expectations driven mostly by lower clean generation capex from 2021-2023. The latest capex plan incorporates $150M less spending in 2021 and $225M less spending in 2022, with flat levels ($1.5B) in 2023."
Shares of Pinnacle West Capital closed at $73.06 yesterday.
You May Also Be Interested In
- Siemens AG (SIE:GR) (SIEGY) PT Raised to EUR170 at Jefferies
- Coca-Cola Hellenic (CCH:LN) (CCHGY) PT Raised to GBP28 at Morgan Stanley
- First Financial Holding Co Ltd (2892:TT) PT Raised to TWD18.16 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesCredit Suisse
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!