Analysts have raised PG&E's fair value price target from $20.69 to $21.23 per share, citing the company's positioning amid robust electricity demand, a positive regulatory environment, and ongoing upgrades to utility assets.

Analyst Commentary

Recent research from multiple firms highlights both positive momentum and lingering concerns for PG&E, shaping a nuanced outlook on the company's share price and future potential.

• Bullish analysts have increased their price targets for PG&E, with several raising expectations in response to the company's strong earnings growth and ongoing upgrades to its asset base.
• PG&E's trading valuation remains at a notable discount relative to peers, suggesting room for multiple expansion if catalysts like an investment grade rating and enhanced dividend yield materialize.
• Forecasts call for robust, near double-digit rate base growth, supported by unprecedented electricity demand, particularly from data centers, and constructive regulatory frameworks.
• Some view the regulatory environment in California as increasingly favorable, with recently enacted legislation bolstering investor confidence and reducing near-term risks tied to wildfire liabilities.

• Bearish analysts point to ongoing uncertainties, including the unclear path for further constructive legislative outcomes, which could constrain upside if no decisive reforms emerge.
• Concerns persist about delays in establishing a permanent wildfire fund solution, along with overarching affordability issues in the state that may pressure both financials and regulatory support.
• While elevated demand and infrastructure needs are positive for growth, risks remain around the timing of key catalysts such as major credit rating upgrades or definitive buyback programs.
• Despite recent upgrades and higher targets, some maintain more neutral views, citing a cautious stance given unresolved sector-specific and geographic risk factors affecting overall execution.

What's in the News

• PG&E plans to spend $73 billion by 2030 to upgrade its transmission infrastructure in response to surging electricity demand from data center projects (Reuters).
• California lawmakers have agreed to increase the state's wildfire utility fund by $18 billion. The cost will be split evenly between ratepayers and utility shareholders, impacting PG&E and other utilities (Bloomberg).
• PG&E provided earnings guidance for 2026, expecting EPS in the range of $1.62 to $1.66. This represents a 9% increase from the 2025 midpoint.

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $20.69 to $21.23 per share.
• Discount Rate remains unchanged at 6.78%.
• Revenue Growth projections have fallen modestly, moving from 4.25% to 3.88% annually.
• Net Profit Margin estimates have decreased marginally, slipping from 14.49% to 14.25%.
• Future P/E ratio expectation has increased from 14.99x to 15.62x.