UPDATE: Credit Suisse Downgrades Pinnacle West Capital (PNW) to Neutral

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."

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 $73.06 yesterday.

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