PCG - California utility PG&E upgraded Edison downgraded at UBS

PG&E ( NYSE: PCG ) -3.3% in Tuesday's trading as UBS downgraded shares to Neutral from Buy with a $17 price target, noting the stock has jumped by a third during the last 12 months and 7% in the last month.

UBS now sees PG&E's ( PCG ) investment positives and negatives as more balanced; the positives include industry leading 10% EPS growth over the next four years, an improved response to wildfire conditions with mitigation tools, and a strong management team led by CEO Patti Poppe.

Meanwhile, Edison International ( NYSE: EIX ) edges higher as UBS upped shares to Buy from Neutral with a $75 price target, citing the utility's progress on hardening the grid.

UBS noted Edison ( EIX ) has installed covered conductors on 4,300 miles of its primary overhead lines with the goal of 8,600 miles including undergrounding by 2028; combined with the use preventative shutoffs, the utility estimates a 65% reduction in the likelihood of a greater than $1B fire in a year.

Separately, PG&E ( PCG ) is raising gas and electricity prices effective January 1, with the average monthly residential bill rising ~3% in round numbers from $234 to $241.

PG&E ( PCG ) has been one of the major winners since the summer as the utility tries to look forward after past wildfire claim risks, Mike Zaccardi says in an analysis published recently on Seeking Alpha .

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