Pinnacle West Capital Is Primed For Multiyear EPS Growth, Says Bullish Analyst
Portfolio Pulse from Priya Nigam
Pinnacle West Capital Corporation (NYSE:PNW) shares rose after BofA Securities upgraded the stock from Neutral to Buy, raising the price target from $71 to $80. The upgrade is based on an improving regulatory environment in Arizona, expected to drive earnings growth through the decade. The Arizona Corporation Commission's (ACC) proposed changes could reduce regulatory lag and underearning, potentially improving PNW's earned returns to ~8.5% in 2026 from ~8.1%. This is anticipated to narrow the gap between earned and allowed returns, fostering faster EPS growth than rate base.
March 18, 2024 | 4:54 pm
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Pinnacle West Capital's stock was upgraded by BofA Securities from Neutral to Buy, with a price target increase from $71 to $80, due to a favorable regulatory environment in Arizona expected to enhance earnings growth.
The upgrade by BofA Securities is a strong positive signal for investors, indicating a bullish outlook on PNW's future earnings growth driven by regulatory improvements in Arizona. The increase in the price target reflects an expectation of higher future earnings and reduced regulatory challenges, which are likely to attract investor interest and potentially drive up the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100