Guggenheim has revised its price target for PG&E (PCG, Financial), increasing it from $16 to $17, while maintaining a Neutral rating on the stock. The adjustment follows PG&E's recent financial disclosures, which included first-quarter earnings per share that aligned closely with market expectations.
Despite the modest target increase, the firm underscores the consistent nature of PG&E's performance, describing the latest period as "another quiet execution quarter." PG&E also reaffirmed its earnings per share guidance for 2025 along with its broader long-term financial strategy. This reiteration suggests a stable outlook for the utility company's fiscal trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for PG&E Corp (PCG, Financial) is $20.61 with a high estimate of $24.00 and a low estimate of $15.00. The average target implies an upside of 18.50% from the current price of $17.39. More detailed estimate data can be found on the PG&E Corp (PCG) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, PG&E Corp's (PCG, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PG&E Corp (PCG, Financial) in one year is $18.66, suggesting a upside of 7.3% from the current price of $17.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PG&E Corp (PCG) Summary page.
PCG Key Business Developments
Release Date: February 13, 2025
- Core Earnings Per Share (EPS) for Q4 2024: $0.31
- Core Earnings Per Share (EPS) for Full Year 2024: $1.36, representing 11% growth over 2023
- 2025 EPS Guidance Range: $1.48 to $1.52, with a midpoint up 10% from 2024
- Annual Dividend Rate for 2025: $0.10, up from $0.04 in 2024
- Non-Fuel O&M Cost Savings in 2024: 4% reduction
- Capital Investment Plan Through 2028: $63 billion
- Operating Cash Flow Growth: More than doubled from 2022
- Non-Fuel O&M Savings in 2024: Nearly $350 million
- Beneficial Load Growth: 5.5 gigawatts of new potential data center load in the pipeline
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PG&E Corp (PCG, Financial) reported a core earnings per share growth of 11% in 2024, reaching $1.36, and has updated its 2025 guidance range with a midpoint increase of 10%.
- The company has successfully completed its equity funding needs through 2028, supporting its $63 billion capital investment plan.
- PG&E Corp (PCG) has achieved significant cost reductions, saving 4% in non-fuel O&M costs in 2024, continuing a trend of savings from previous years.
- The company is actively pursuing beneficial load growth, with 5.5 gigawatts of new potential data center load applications, which could lead to customer electricity bill savings.
- PG&E Corp (PCG) has maintained a strong focus on safety, with its wildfire mitigation plan and safety protocols, including public safety power shutoffs and advanced technology deployments.
Negative Points
- The recent fires in Southern California have raised concerns about the adequacy of the AB 1054 wildfire fund and the potential need for legislative changes.
- There is uncertainty regarding the financial community's confidence in the California model for wildfire risk management, which could impact investor sentiment.
- The company faces challenges in balancing the need for infrastructure investment with maintaining affordability for customers.
- PG&E Corp (PCG) is still working towards achieving investment-grade ratings, with rating agencies taking a cautious approach due to wildfire risks.
- The potential for a multi-year legislative effort to address wildfire funding issues could delay necessary reforms and impact the company's financial outlook.
