UPDATE: ISI Group Upgrades Pinnacle West Capital to Buy, Ups PT to $52

ISI Group raises its rating on Pinnacle West Capital

to Buy from Hold and increases its price target to $52 from $46 as P/E multiple should see upside on declining risk profile. ISI Group notes, "On 1/6/12 PNW's core utility Arizona Public Service filed a definitive settlement with the Arizona Corporation Commission Staff and other parties in its pending general rate case. The settlement allows a 10% ROE with a $116m non-fuel base rate increase. The rate increase will be fully mitigated by a decline in fuel and purchased power costs. The settlement requires final approval from the Commission. New rates would take effect in July ‘12." PNW closed at $47.15 per share on Monday.