Pacific Gas & Electric Corporation (PCG) has been given a median price target of $58.88 from Wall Street analysts. This implies a possible rise of 5% over the next year from its current price of $56. Of the 22 analysts tracking PCG, 13 have given it a “hold” recommendation, while nine have given it a “buy” recommendation. None of the analysts have given it a “sell” recommendation.
Among PCG’s California peers, Sempra Energy (SRE) has a price target of $116.70 against its current market price of $95. This indicates a possible rise of 23% over the next year. Edison International (EXI) has a price target of $66, which indicates a rise of 4%. EIX is currently trading at $63.70. The chart above shows the price targets given by various analysts for PG&E Corporation.
PG&E Corporation has given an earnings per share guidance range of $3.65–$3.85 for 2016. It earned $3.12 per share in 2015. The company’s strategy to shift focus from generation to distribution seems to be a sound move, as demand growth for power has been negligible in the last few years.
PCG is also actively investing in renewables (PBW) to comply with California regulators. Its much-awaited gas (UNG) transmission and storage rate case is expected to boost earnings significantly in 2016. Management expects the company’s rate base to increase by 5–7% annually in the next five years.