Bank of America Securities analyst Ross Fowler maintained a Buy rating on Pinnacle West Capital (PNW – Research Report) yesterday and set a price target of $90.00.
Ross Fowler’s rating is based on Pinnacle West Capital’s strong financial performance in the fourth quarter of fiscal year 2024, which exceeded both guidance and consensus estimates. The company reported an operating EPS of $5.24 for the fiscal year, surpassing the previous year’s $4.41 and outperforming the consensus and Bank of America estimates. This strong performance was attributed to favorable regulatory outcomes and improved weather conditions, which positively impacted the company’s earnings.
Additionally, Pinnacle West Capital’s stable outlook for 2025, with unchanged EPS guidance and long-term growth targets, supports the Buy rating. The company’s guidance for EPS growth, rate base growth, and weather-normalized retail sales growth remains robust. Furthermore, the regulatory environment in Arizona is expected to be favorable, with potential economic developments such as chip manufacturing facilities and data centers contributing to the positive outlook. These factors combined make Pinnacle West Capital an attractive investment opportunity.