Market Overview

Citi Upgrades PG&E, Raises Price Target By 200%

Citi Upgrades PG&E, Raises Price Target By 200%

PG&E Corporation (NYSE: PCG) has been on a huge run since the company officially filed for bankruptcy in late January, and one Wall Street analyst said Tuesday that there’s plenty more upside remaining for PG&E stock.

The Analyst

Citi analyst Praful Mehta has upgraded PG&E stock from Neutral to Buy and raised his price target from $11 to $33.

The Thesis

The huge change in target price comes after recent indications from the California legislature and governor’s office suggest a shift in urgency level related to wildfire liability legislation.

Mehta said there are four reasons he now believes new liability legislation could be passed within two or three months:

  • The governor recently voiced California’s need for timely liability legislation, a much different tone than he took just a month ago.
  • Ratings agencies have said they need to see a clear, executable action plan related to the California utilities or else they will continue to downgrade their credit.
  • Bills such as SB235 provide means of funding for liability reform, including state support via taxes or changes to the state’s cap-and-trade program.
  • The governor-appointed strike team and Blue Ribbon force is expected to make a timely recommendation for practical solutions to California’s problems.

Mehta said news from the strike team will likely be the next major bullish catalyst for PG&E stock.

“With path to legislation limiting future wildfire liabilities getting clearer, [the] current price offers a great entry opportunity with upcoming catalyst,” Mehta wrote in the note.

Price Action

PG&E was up 14.7 percent at $17.76 per share following the upgrade, but remains down 58 percent overall in the past six months.

Related Links:

Well Fargo Downgrades Edison International On Liability Legislation Pessimism

Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios

Photo credit: Frank Deanrdo, Flickr

Latest Ratings for PCG

Aug 2020MizuhoMaintainsBuy
Jul 2020Morgan StanleyMaintainsEqual-Weight
Jun 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for PCG
View the Latest Analyst Ratings


Related Articles (PCG)

View Comments and Join the Discussion!

Posted-In: California wildfires Citi Praful MehtaAnalyst Color Upgrades Price Target Top Stories Analyst Ratings Best of Benzinga

Latest Ratings

UBERRBC CapitalMaintains50.0
WIXJMP SecuritiesMaintains363.0
CVIJP MorganInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at