Mizuho Analyst Raises PG&E Price Target by 9.5% as Strong Buy Rating Stays

By Don Francis, Editor
May 18, 2024 10:23 AM UTC
Mizuho Analyst Raises PG&E Price Target by 9.5% as Strong Buy Rating Stays

Mizuho's Paul Fremont raised their price target on PG&E (NYSE: PCG) by 9.5% from $21 to $23 on May 17, 2024. The analyst maintained their Strong Buy rating on the stock.

PG&E, the California-based utility company, recently reported its first-quarter earnings for 2024. Despite facing challenges in the earnings call cycle, Fremont remains optimistic about the company's prospects. In light of the robust market multiples, the analyst decided to raise their price target for PG&E.

In the first quarter of 2024, PG&E exceeded expectations with an EPS (earnings per share) of $0.37, beating the Zacks Consensus Estimate of $0.35. This also marked a 27.6% increase compared to the first quarter of 2023. However, the company fell short of revenue expectations, reporting $5.86 billion instead of the estimated $6.66 billion.

Looking ahead, PG&E's management provided guidance for the full year of 2024, projecting an EPS range of $1.33 to $1.37 per share. This guidance remains unchanged from previous estimates, and the current Zacks Consensus Estimate stands at $1.35 per share.

CEO Patti Poppe emphasized the company's commitment to safety and reducing wildfire risk. She highlighted PG&E's dedication to building a clean and climate-resilient energy system to meet the needs of customers at the lowest possible cost.

The consensus among analysts is that PG&E's upcoming year will deliver an EPS of $1.29. If these predictions hold true, it would represent a 13.2% year-over-year increase.

As for the stock performance, since the latest quarterly report, PG&E's stock price has increased by 0.8%. On a year-over-year basis, the stock has risen by 10.7%. However, during this period, PG&E has lagged behind the broader S&P 500, which experienced a significant increase of 27.5%.

Paul Fremont, the Mizuho analyst, holds an impressive track record in the industry. Ranked in the top 20% of Wall Street analysts by WallStreetZen, Fremont boasts an average return of 4% and an impressive 62.4% win rate. Specializing in the Utilities sector, the analyst's insights carry weight in the industry.

PG&E Corporation, established in 1905 and headquartered in San Francisco, California, generates electricity and provides transmission and distribution services to millions of customers across the state. The company utilizes a diverse range of energy sources, including nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic technologies.

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