Pinnacle West downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded Pinnacle West (PNW) to Equal Weight from Overweight with a price target of $91, down from $93. The firm says fundamentally Arizona is still an improving jurisdiction, and even better post election than before. However, this is largely priced into Pinnacle West shares with a return on equity lag expected through 2026, the analyst tells investors in a research note. Barclays says the shares now trade at a 6% premium to large group electric peers on 2027 estimates, which is warranted with little upside as management works towards formula rates in the Arizona jurisdiction.