Tags: pg&e | cleared | fire | lone | bull | sees distress

PG&E Cleared of 2017 Fire But Lone Bull Still Sees Distress

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(Piotr-Trojanowski/Dreamstime)

Thursday, 24 January 2019 06:05 PM

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.”

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As PG&E Corp. barreled toward bankruptcy last week, just one analyst kept a "buy" rating on the shares, largely on valuation.
pg&e, cleared, fire, lone, bull, sees distress
141
2019-05-24
Thursday, 24 January 2019 06:05 PM
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