FBR Capital reiterated its "Outperform/Top Pick" on PG&E Corp (NYSE:PCG), citing progress toward a rate case settlement.
"It appears that PG&E's general rate case settlement discussions continue to be progressing well. In an email sent on October 7, PG&E's law department invites all parties to a settlement conference held on October 15, 2010 (this Friday). In this email, PG&E indicates that it is 'hopeful' that during this conference the parties "will successfully conclude negotiations and produce a settlement.
"In a subsequent email sent to the Administrative Law Judge and all parties, PG&E indicates that the next status report will be submitted no later than Monday, October 18, 2010," said FBR.
The company was also recently sued in connection to the San Bruno, California, that killed eight people.
PG&E closed Monday at $46.59, down $0.19, or 0.41 percent.
Showing posts with label PGE. Show all posts
Showing posts with label PGE. Show all posts
Tuesday, October 12, 2010
Monday, October 11, 2010
Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Credit Suisse (NYSE:CS) Manage PGE Utility Sale
Along with UniCredit SpA, JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C) and Credit Suisse Group AG (NYSE:CS) helped coordinate the sale of 10 percent of PGE Utility for the Polish Treasury.
Late Friday on its website the Treasury Ministry confirmed they had sold the stake for $1.4 billion.
The sale was initiated to raise capital to lower the need to borrow and pay down the budget deficit of the country.
Polish law requires the government to maintaina stake of over 50 percent in PGE. That wasn't a problem as they hold 79 percent of the utility at this time.
The Treasury Ministry stated that the sale was oversubscribed, and drew the interest of investors from 22 countries. Investors from Poland acquired over half the shares offered.
Joint bookrunners on the sale were Goldman Sachs (NYSE:GS), PKO Bank Polski SA, Societe Generale SA and KBC Groep NV.
Late Friday on its website the Treasury Ministry confirmed they had sold the stake for $1.4 billion.
The sale was initiated to raise capital to lower the need to borrow and pay down the budget deficit of the country.
Polish law requires the government to maintaina stake of over 50 percent in PGE. That wasn't a problem as they hold 79 percent of the utility at this time.
The Treasury Ministry stated that the sale was oversubscribed, and drew the interest of investors from 22 countries. Investors from Poland acquired over half the shares offered.
Joint bookrunners on the sale were Goldman Sachs (NYSE:GS), PKO Bank Polski SA, Societe Generale SA and KBC Groep NV.
Monday, September 27, 2010
FBR Likes PG&E (NYSE:PCG), SCANA (NYSE:SCG), Among Regulated Utilities
Among regulated utilities, FBR Capital says their top pick is Pacific Gas & Electric Co. (NYSE:PCG), and right behind them SCANA Corporation (NYSE:SCG).
Responding to questions on whether or not regulated utilities expensive to the S&P, FBR said, "A recurring question comes up during client meetings: Are regulated utilities expensive to the S&P? This question is particularly relevant now. Regulated utilities are trading at a forward P/E multiple of approximately 13x, a premium to the S&P trading at approximately 12x. This represents a relative P/E ratio for
utilities of 1.1x the S&P, which is high relative to the historical
average of 0.76x...Within the regulated group, we currently favor PG&E
(FBR Top Pick) and SCANA. These two companies have the best earnings
growth prospects, in our view, and are currently trading at a discount
to other regulated peers. They also happen to be among the least
interest-rate sensitive within our coverage universe."
PG&E closed the week at $45.82, gaining $0.60 on Friday, or 1.33 percent. SCANA closed at $40.45, up $0.78 on Friday, or 1.97 percent.
Volume for both companies was down in comparison to the 3-month daily average.
Responding to questions on whether or not regulated utilities expensive to the S&P, FBR said, "A recurring question comes up during client meetings: Are regulated utilities expensive to the S&P? This question is particularly relevant now. Regulated utilities are trading at a forward P/E multiple of approximately 13x, a premium to the S&P trading at approximately 12x. This represents a relative P/E ratio for
utilities of 1.1x the S&P, which is high relative to the historical
average of 0.76x...Within the regulated group, we currently favor PG&E
(FBR Top Pick) and SCANA. These two companies have the best earnings
growth prospects, in our view, and are currently trading at a discount
to other regulated peers. They also happen to be among the least
interest-rate sensitive within our coverage universe."
PG&E closed the week at $45.82, gaining $0.60 on Friday, or 1.33 percent. SCANA closed at $40.45, up $0.78 on Friday, or 1.97 percent.
Volume for both companies was down in comparison to the 3-month daily average.
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