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PG&E upgraded to 'Buy,' stock hits new year high
Analyst says electric utility PG&E Corp. set to outperform competition; upgrades to 'Buy'
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| PCG | 45.23 | +0.25 |
NEW YORK (AP) -- Shares of PG&E Corp. rose to a new 52-week high as an analyst upgraded the electric utility's stock on Monday.
Shares of PG&E rose 71 cents to $42 in morning trading. Earlier, the stock climbed to $42.20, its highest level since September 2008.
Jefferies & Co. analyst Paul Fremont said that given its above-average growth rate and below-average risk, the San Francisco company is positioned to trade at a premium to its industry peers.
In its most recent quarterly report PG&E posted a 32 percent second-quarter profit jump and reaffirmed its earnings growth outlook for the next three years. The company expects 2009 earnings to range between $3.15 and $3.25 per share. They are expected to grow to a range of $3.35 to $3.50 per share next year and to between $3.65 and $3.85 per share for 2011.
Fremont maintained his earnings per share estimates for 2009, 2010 and 2011 of $3.15, $3.40 and $3.65, respectively.
Looking ahead, Fremont said that even with the company's hefty capital spending program, he does not see the need for PG&E to issue new equity until 2011.
Additionally, Fremont expects the California public utilities commission to approve the company's cost of capital proposal - a move that would provide PG&E with capital cost certainty through 2012.
Fremont upgraded his rating for the company's stock to "Buy" from "Hold." He also raised his price target to $46, up from $43.50.
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