Pinnacle West initiated with a Buy at Jefferies

Jefferies initiated coverage of Pinnacle West with a Buy rating and $104 price target. U.S. Utilities are viewed as “boring bond proxies by many, but the sector is as exciting as it has been in decades now,” the analyst tells investors in a research note. The firm says data center demand, reshoring, energy transition, political uncertainty, increasing weather events, spreading wildfire exposure, and an uncertain economic backdrop create “tremendous opportunities but also risks for shareholders.” Jefferies initiated 15 diverse utilities across market caps and views PPL Corp. (PPL) as a top pick “with an attractive base outlook across nearly all metrics but trading at an in-line multiple.”