2023-03-14 09:13:34 ET
- Credit Suisse on Tuesday upgraded Pinnacle West Capital ( NYSE: PNW ) to Outperform from Neutral as a recent court ruling in a case regarding SCR equipment strengthens the case for EPS inflection.
- An Arizona appeals court ruled that Pinnacle ( PNW ) can increase its rate of return to 8.9% from 8.7% and approved costs that had been disallowed for SCR equipment.
- "We believe EPS expectations are poised to inflect for shares given several positive updates including: court remand of the Arizona Corporation Commission's SCR decision and ROE reduction, and higher three-year capEx of $5.32B from prior $4.7B," said analyst Nicholas Campanella.
- "We see further room for outperformance with the stock still trading at a 6% P/E discount on our 2025E outlook in addition to what we're viewing as a structural shift in the operating environment," he added.
- Credit Suisse raised its price target on Pinnacle ( PNW ) to $80 from $77, implying 2.1% potential upside to its last close.
- The research firm's stance contrasts Hold ratings by SA Quant as well as Wall Street analysts .
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Credit Suisse upgrades Pinnacle West as SCR appeal strengthens case for EPS inflection