PG&E Corp Is Favorably Valued Relative To Its Peers In Argus' View

Argus reiterated its Buy rating on PG&E Corporation PCG and lifted the price target to $79 from $74. It raised its 2016 EPS estimate to $4.73 from $4.60, which is above the current consensus forecast of $4.63.

"Our revised estimate reflects management's third-quarter guidance and projected benefits from the forth coming TimBar acquisition," wrote Argus.

According to the analysts, PG&E's stock appears favorably valued relative to peers based on P/E, price/book, and EV/EBITDA multiples. shares are trading at 15.6-times their 2016 EPS forecast, below the peer average of 19.4 and near the low end of the 16-year annual average range of 15-19. The price/sales ratio is 1.2, slightly above the peer average of 1.1, and the trailing price/book multiple is 4.4, below the peer average of 8.8. The trailing EV/EBITDA multiple is 6.9, below the average of 9.4 for peers.