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UPDATE: Bank of America Downgrades Pinnacle West Capital on Difficult Regulatory Cycle Ahead

Related PNW
Earnings Scheduled For February 24, 2017
10 Notable Stocks Trading Ex-Dividend Friday, October 28

In a report published Friday, Bank of America analyst Brian Chin downgraded the rating on Pinnacle West Capital (NYSE: PNW) from Buy to Neutral, and lowered the price target from $59.00 to $55.00.

In the report, Bank of America noted, “We are downgrading shares of PNW to Neutral from Buy, with a revised price objective of $55. Our new PO reflects a 13.5x target PE multiple applied to our 2016 EPS estimate of $4.04. In our opinion, PNW's -0.5x current trading valuation discount (2016 PE) to its peer group is merited given: 1) a challenging rate case cycle ahead and 2) the continued adoption of distributed generation in the state.

"Our EPS estimates are unchanged at this time; our downgrade reflects our subjective assessment of the regulatory climate and relationships between Pinnacle West and key stakeholders.”

Pinnacle West Capital closed on Thursday at $54.50.

Latest Ratings for PNW

Sep 2017Morgan StanleyMaintainsUnderweight
Aug 2017Morgan StanleyMaintainsUnderweight
Jul 2017Morgan StanleyMaintainsUnderweight

View More Analyst Ratings for PNW
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Posted-In: Bank of America Brian ChinAnalyst Color Downgrades Analyst Ratings


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