PNW - Pinnacle West: Demand For Its Electricity Is Booming
2024-06-10 17:50:14 ET
Summary
- Pinnacle West, the primary electric utility in Phoenix, is expected to benefit from the city's booming population and job growth.
- The company has a strong growth pipeline, with plans to invest in transmission and generation assets, leading to a substantial increase in its rate base.
- Despite its positive outlook, PNW is currently undervalued compared to its peers, making it an attractive investment opportunity.
Pinnacle West ( PNW ) services Phoenix and the surrounding areas, which is one of the highest growth markets in terms of energy demand. We believe the growing demand will lead to substantial capital outlay and that the larger rate base will result in materially higher earnings per share. Despite potential for outsized growth, PNW trades at the low end of its peer set on price to earnings and EV/EBITDA. With its superior combination of growth and value, PNW is positioned to outperform....
Pinnacle West: Demand For Its Electricity Is Booming