PG&E Corp. (PCG) Upgraded by UBS to Buy

PG&E Corp. (NYSE:PCG) is one of the 10 best regulated electric stocks to buy according to hedge funds.

On March 9, UBS upgraded PG&E Corp. (NYSE:PCG) from a Neutral rating to Buy. The firm also raised the price target from $20 to $23. The thesis hinges on Phase 2 legislation expected before the July 2 recess, which could meaningfully reduce the firm’s utility liability exposure.

chungking/Shutterstock.com

The firm also anticipates potential upside in the stock price based on California wildfire policy improvements and better affordability. With the stock currently trading at a 43% price-to-earnings discount to peers, UBS expects continued risk reduction to narrow this valuation gap.

On February 24, Sunrun (RUN) reported that it had successfully completed a dispatch season for its distributed power plant partnership with PG&E Corp. (NYSE:PCG). The program uses customer-owned battery systems to supply electricity to the grid during periods of high demand. Commenting on the milestone, Sunrun CEO Mary Powell, stated:

“Sunrun’s groundbreaking program with PG&E Corp. (NYSE:PCG) shows that distributed power plants can help communities avoid the high cost of adding more poles and wires to accommodate load growth, we saw time and time again that our customers’ batteries delivered location-specific load relief with high precision and consistent performance.”

PG&E Corp. (NYSE:PCG) serves as a massive, dual-utility holding company, managing the generation, transmission, and distribution of both electricity and natural gas. Their business model is defined by operating a highly regulated infrastructure network that provides essential energy services to millions of residential, commercial, industrial, and agricultural customers.

While we acknowledge the risk and potential of PCG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PCG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.