PG&E assumed with an Overweight at JPMorgan

JPMorgan analyst Richard Sunderland assumed coverage of PG&E with an Overweight rating and $22 price target With the shares having significantly underperforming year-to-date following recent wildfires in southern California, the pure-play California investor-owned utility has returned to valuations discounts last seen in 2021-2022, the analyst tells investors in a research note. The firm highlights PG&E’s lack of exposure to the January 2025 wildfires. As such, the share selloff screens as overdone given the company’s years of mitigation work, prudency review, and continued availability of the fire fund today, though the path to re-rate may take time over 2025, the analyst tells investors in a research note.