PG&E Cleared of 2017 Fire But Lone Bull Still Sees Distress
PG&E's Lone Bull Isn't Looking So Lonely Right About Now
(Bloomberg) -- As PG&E Corp. barreled toward bankruptcy last week, just one analyst kept a “buy” rating on the shares, largely on valuation. On Thursday, the stock surged by the most ever, rising 75 percent to $13.95 after regulators said its equipment didn’t cause the deadly 2017 Tubbs wildfire.
Morningstar analyst Travis Miller, the lone PG&E bull, sees the company remaining in a precarious position.
“I don’t think this removes the bankruptcy scenario,” Miller, an analyst at Morningstar, said in an interview. “PG&E still faces financial distress simply given that the capital markets are not open for business for them. This is a positive development, but the fact remains that PG&E faces tens of billions in liabilities.”
Miller had a price target of $11. “Investors should still keep this news in perspective,” he said. “The 2018 Camp Fire remains a major financial concern.”
To contact the reporter on this story: Brian Eckhouse in New York at beckhouse@bloomberg.net
To contact the editors responsible for this story: Lynn Doan at ldoan6@bloomberg.net, Will Wade, Margot Habiby
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