Portland General Electric ( NYSE: POR ) edged higher Thursday after Credit Suisse upgraded shares to Neutral from Underperform with a $46 price target, up from $41, following an "eventful" Q3 earnings report that included a ~$500M equity issue and a raise in the long-term earnings growth rate to 5%-7% with potential for more RFP wins in 2023 and beyond.
Credit Suisse's Nicholas Campanella believes expectations around FY 2023 "have sufficiently reset, and POR essentially issuing ~12.5% of its market cap overnight removes one of the largest overhangs for shares with the story now focused on execution."
But the analyst still has "trouble reconciling" with the 5%-7% EPS compound annual growth rate, seeing Portland General ( POR ) "as more a 'show-me' story as management executes through a transition year," making the stock's valuation look more reasonable.
Earlier this week, Portland General ( POR ) launched a public offering of 10.1M common shares at $43/share .
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Portland General lifted off Sell line at Credit Suisse after equity raise