PG&E upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Jeremy Tonet upgraded PG&E to Overweight from Neutral with a price target of $22, up from $19. As national attention on wildfire risk grows, the financial protections under which PG&E operates are “best-in class” given California’s AB 1054 elements that include wildfire fund liquidity and a liability cap, which contrasts versus other western states that have more undefined regulatory and legal constructs as well as less judicial precedent, the analyst tells investors in a research note. Moreover, the upcoming fund payment to PG&E likely provides proof of concept and de-risks the story for more investors, a key catalyst, says the firm.