PG&E (PCG) Stock Short-Circuits in 2025 as Regulatory Risk Sparks Investor Jitters

PG&E Corp (NYSE:PCG) is one of the most oversold S&P 500 stocks so far in 2025. After a relatively better performance in 2024, PG&E stock has been a laggard in 2025 with declines of over 33%, and is now trading near the bottom of its 52-week range.

A major part of this correction occurred in June, when the shares nosedived by around 20%. Investors became increasingly cautious after several reform proposals were advanced, including regulatory changes as part of the California utility regulation overhaul bill. Investors were already digesting the company’s May announcement of its plan to keep rates flat for the next few years. While management stated that utility bills won’t rise in 2025 and will fall in 2026, consumers appeared to remain sceptical, as the company has already raised rates multiple times in 2024.

A utility employee connecting wires at a power station in order to distribute electricity to customers.

Driven by regulatory uncertainty, analyst opinions on the shares remained mixed. In mid-May, Morgan Stanley analyst David Arcaro had cut his price target on PG&E Corp (NYSE:PCG) to $18 from $18.5. While utilities continue to see good demand from both data centers and large load customers, the analyst maintained his Underperform rating. More recently, in mid-June, Bank of America Securities analyst Ross Fowler maintained a Buy rating with a price target of $24.

PG&E Corp (NYSE:PCG) provides electric and natural gas distribution services, as well as electric generation and natural gas transmission and storage services, through its subsidiaries. PG&E serves retail customers for both electric and natural gas in northern and central California.

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Disclosure: None. This article is originally published at Insider Monkey.