NEW YORK (TheStreet) -- Pacific Gas and Electric (PCG) was upgraded by analysts at JPMorgan Chase to "overweight" from "neutral" this morning, with a higher price target of $57 from $50 on shares of the natural gas and electricity company.
Analysts at JPMorgan said regulatory outlook has improved and the company trades at a more reasonable valuation.
The firm now sees the risk/reward scale favoring PG&E shares, "given the regulatory steps forward and adequately priced-in risk for near-term events."
JPMorgan added that it believes the company is well positioned to minimize lag and grow earnings.
San Francisco-based PG&E is a holding company that conducts its business through its primary operating subsidiary in northern and central California.
The company has received regulatory approval to pilot and test new smart grid technologies to provide electric service.
Shares of PG&E closed at $52.07 on Friday.
Separately, TheStreet Ratings team rates PG&E CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PG&E CORP (PCG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."