Monday, April 18, 2011

PG&E (PCG) Upgraded by Credit Suisse (CS)

Shares of PG&E Corporation (NYSE:PCG) were upgraded by Credit Suisse (NYSE:CS) from "Neutral" to "Outperform," citing the headwinds facing the company have been identified and at the current price are overstated, as they see limited fundamental downside going forward.

Credit Suisse says shares of PCG are trading cheap to its peers at this time, considering the company's 7%+ rate base growth, earnings visibility with decoupling, forward rates and cost of capital set through 2012, a 2013 ROE reset to 10.5%, limited risk to Diablo Canyon, and realistic outcomes from San Bruno are not that negative.

They have a EPS estimate for 2011-2013 of $3.73, $3.92, and $3.74.

PG&E Corporation were trading at $44.71, down $0.15, or 0.35 percent, as of 12:10 PM EDT. The price target on the company was boosted from $45 to $50 by Credit Suisse.

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