NEW YORK (TheStreet) -- Shares of PG&E (PCG) are climbing, up 0.37% to $52.13 in early market trading Wednesday, after the company had its rating lowered to "hold" from "buy" by analysts at Deutsche Bank this morning.
However, the firm raised its price target to $54 from $52 on shares of the electric utilities company, saying PG&E outperformed the sector by nearly 9% since late October.
Deutsche Bank analysts cited the open-ended nature of the cases regarding the company's alleged violations of state law in the aftermath of a fatal explosion in San Bruno, CA.
Analysts at the firm noted, "We continue to believe that ultimately PG& E can re-gain its premium valuation, but that path continues to be uncertain and potentially lengthy."
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 18.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 375.00% and other important driving factors, this stock has surged by 31.47% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- 35.45% is the gross profit margin for PG&E CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.48% is above that of the industry average.
- Net operating cash flow has increased to $1,677.00 million or 22.05% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.66%.
- You can view the full analysis from the report here: PCG Ratings Report