Update shared on17 Sep 2025
Fair value Decreased 0.65%Analysts have slightly lowered their price target for Pinnacle West Capital to $94.92, reflecting cautious optimism driven by improving regulatory trends and growth prospects in Arizona, offset by a more moderate outlook for revenue growth.
Analyst Commentary
- Bullish analysts note improving structural trends in Arizona's regulatory environment, citing the 2025 General Rate Case (GRC) as a key driver for reduced regulatory lag.
- Positive outlook on Arizona's potential to benefit from growth in the data economy, industrial load expansion, and favorable population trends.
- Lower climate risk in Arizona compared to other Western SMID-cap utilities enhances Pinnacle West's competitive positioning.
- Long-term advantages of nuclear energy are seen as underappreciated by the market, supporting a more optimistic view on the utility sector broadly.
- Recent sector-wide outperformance relative to the S&P 500 and generally positive updates around large-scale renewables and residential solar bolster sentiment, though some analysts remain cautious.
What's in the News
- Pinnacle West Capital reaffirmed its 2025 consolidated earnings guidance, expecting $4.40 to $4.60 per diluted share on a weather-normalized basis.
Valuation Changes
Summary of Valuation Changes for Pinnacle West Capital
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $95.54 to $94.92.
- The Consensus Revenue Growth forecasts for Pinnacle West Capital has fallen from 5.1% per annum to 4.7% per annum.
- The Future P/E for Pinnacle West Capital has risen slightly from 20.28x to 20.80x.
Disclaimer
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