PG&E Corp: A Mixed Bag of News, But Don’t Get Too Excited

PG&E Corp’s stock price has finally started to show some life, but let’s not get ahead of ourselves here. Shares are trading at a higher level than in recent months, but that’s not exactly a ringing endorsement of the company’s performance. The real story is in the preferred shares, which have crossed the 7% yield mark, making them a relatively attractive investment opportunity - for now.

But what’s behind this sudden surge in popularity? The Diablo Canyon power plant has entered extended operations, which is expected to contribute to the company’s revenue. That’s a positive development, but let’s not forget that this is a company that’s still reeling from the aftermath of the 2018 wildfires. The fact that UBS has reaffirmed its “Neutral” rating on PG&E stock following an increase in the capital cost cap by the CPUC is a clear indication that the company still has a long way to go.

Here are the key takeaways:

• PG&E Corp’s stock price is up, but don’t get too excited - it’s still a long way from where it needs to be.
• The preferred shares are a relatively attractive investment opportunity, but that’s not saying much.
• The Diablo Canyon power plant’s extended operations are a positive development, but let’s not forget the company’s troubled past.
• UBS has reaffirmed its “Neutral” rating on PG&E stock, which is a clear indication that the company still has a long way to go.

In short, PG&E Corp’s financial performance and operational developments suggest a stable outlook, but that’s a pretty low bar to clear. The company still has a lot of work to do to regain the trust of investors and the public.