Portland General Electric Faces Pressure in '23 Before A Brighter '24, Analyst Says - Portland Gen Electric (NYSE:POR)

Credit Suisse analyst Nicholas Campanella reiterated a Neutral rating on the shares of Portland General Electric Company POR and raised the price target from $46 to $48.
The analyst provides a preview for POR where the analyst expects POR to give FY23 EPS guidance and reaffirm the new 5-7% LT EPS growth rate.
The quarter setup is cautious to the analyst, given the EPS dynamic and power cost pressures impacting 4Q & FY22.
Recall FY22 is also the base of the 5-7% EPS CAGR introduced on the 3Q call, and the analyst now sees POR potentially below the range.
The company recently raised $500 million of common equity and refreshed its 5-7% EPS CAGR, which management has a line of sight to over the long term, with 2023 being an investment year, the analyst noted.
The analyst still sees LT EPS below the current CAGR, but two key catalysts for '23 which should help POR's growth are the rate case and the pending RFP award.
Given renewable supply chain issues, the analyst expects little detail on the 4Q call regarding the RFP.
POR still likely has a 3GW+ rate base renewable opportunity over the LT, with additional clarity coming in FY23 view an IRP refresh in the analyst's view.
The Clearwater wind asset is the only announced ($415Mn) capital opportunity to date for the current '21 All-source RFP, with the prospects for an additional battery likely to materialize in the current procurement, said the analyst.
The analyst added that negotiation with bidders on the final shortlist is considering impacts from the inflation reduction act, among other items.
The opportunity remains outside the analyst's CapEx expectations but could put POR within the 5-7% EPS glide path in '24/'25.
The analyst expects management to reiterate this view along with the current 5YR $4.2Bn capital plan on the 4Q call, with the LT financing plan also unchanged.
Price Action: POR shares are trading higher by 0.54% at $46.75 on the last check Monday.

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