UPDATE: Morgan Stanley Initiates Equal-Weight, $47 PT on PG&E Corporation; Upside Risky

Morgan Stanley initiates its coverage on PG&E Corporation (NYSE: PCG) with a rating of Equal-weight and a price target of $47.

Morgan Stanley notes, "PCG trades at a discount to peers and a near-term settlement on San Bruno looks likely, which should be positive. However, there continues to be risk surrounding the company's equity ratio and pipeline safety recovery. We see some upside to our $47 PT, based on 14.0x 2014e EPS of $3.35. Our estimate is modestly below consensus, driven by our view that equity needs will continue due to a robust capex plan."

PCG closed at $ on Friday.

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