KeyBanc analyst Sophie Karp raised the firm’s price target on Pinnacle West to $61 from $55 and keeps an Underweight rating on the shares. The firm notes Pinnacle West operates in one of the most unfriendly regulatory climates across its coverage and is battling myriad issues, including pension expenses, elevated interest rates, and inflation. The company plans to issue equity after the outcome of its current rate case. As a result, KeyBanc believes earnings will be lumpy over the next few years, and expects investors to favor names with more compelling opportunities. Although the recent approval of the 2019 rate case appeal was a positive development, the firm remains hesitant around an improving regulatory construct with most of the ACC held over from the last rate case. Therefore, it believes shares will be pressured until investors can gain more confidence in the turnaround story.
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Read More on PNW:
- Pinnacle West price target lowered to $78 from $80 at BofA
- Pinnacle West price target raised to $84 from $80 at Mizuho
- Pinnacle West price target raised to $89 from $85 at Wells Fargo
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