UPDATE: Deutsche Bank Upgrades PG&E As Base Case Just Got Better

In a report published Wednesday, Deutsche Bank analyst Jonathan Arnold upgraded the rating on

from Hold to Buy, and raised the price target from $49.50 to $52.00. In the report, Deutsche Bank noted, “PCG reported 3Q14 operating EPS of $1.73 versus our $1.21E and $1.12 consensus. Versus our estimate, lower taxes related to new IRS guidelines on repair deductions similar to what EIX has seen (+$0.18), timing-related tax and other expenses (+$0.17), GRC-related recoveries (+$0.05), and miscellaneous positives (+$0.08) were the drivers of the upside. The repair deduction benefit was triggered by the General Rate Case (GRC) decision during Q3 and is expected to continue (at some level) through the current rate period (2014-16).” PG&E Corporation closed on Tuesday at $47.52.