California Utilities EIX, PCG, And SRE Offer Strong Buy Opportunities Despite Past Wildfire Concerns, Says BofA Analyst
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Ross Fowler has reinstated Buy ratings for Edison International (EIX), Pacific Gas & Electric Co. (PCG), and Sempra (SRE), citing discounted trading due to past wildfire concerns. Despite high customer rates, California's wildfire risk management is strong, presenting a favorable entry point for investors.
September 12, 2024 | 7:08 pm
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Edison International (EIX) receives a Buy rating with a $95 price target. The company is well-positioned to benefit from California's electrification policy, with projected EPS growth through 2026.
EIX is trading at a discount due to past wildfire concerns, but the analyst highlights its strong position in California's electrification policy. The projected EPS growth supports a positive outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Pacific Gas & Electric Co. (PCG) is rated Buy with a $24 price target. The company is evolving into a more regulated utility, with projected EPS growth aligning with peers by 2026.
PCG is seen as evolving into a more regulated utility, with management effectively cleaning up post-emergence. The projected EPS growth supports a positive outlook.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Sempra (SRE) receives a Buy rating with a $94 price target. The company's value is driven by regulated utilities in California and Texas, with future LNG projects offering additional opportunities.
SRE's performance is driven by regulated utilities, with future LNG projects offering equity sell-down opportunities. The projected EPS growth supports a positive outlook.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 100