Analysts rate PG&E Corp. (PCG:NYE) with a Buy rating and a $15 target

Credit Suisse maintains the outperform rating with a $16 PCG stock price target.

Based on the PG&E Stock Forecast from 5 analysts, the average analyst PCG stock price target is USD 15.56 over the next 12 months. PG&E Corp’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of PCG stock forecast is Bearish, which is based on 3 positive signals and 12 negative signals. At the last closing, PCG stock price was USD 12.50PCG stock price has changed by -0.11% over the past week, -0.05% over the past month and +30.07% over the last year.

 

About PG&E Corp. (PCG:NYE):

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. It serves residential, commercial, industrial, and agricultural customers, as well as natural gas-fired electric generation facilities. The company was incorporated in 1905 and is headquartered in San Francisco, California.

 

What we like:

High market capitalization:

PG&E stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Positive cash flow:

PG&E stock had positive total cash flow in the most recent four quarters.

Positive free cash flow:

PG&E stock had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk adjusted returns:

PG&E stock is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility:

The total returns for PG&E stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns:

The company has under-performed its peers on annual average total returns in the past 5 years.

Below median dividend returns:

The average income yield of PG&E stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings:

PCG stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis:

PCG stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity:

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization:

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets:

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the stock analysis and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis:

PCG stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

PCG stock price has shown below median earnings growth in the previous 5 years compared to its sector.