Portland General Electric upgraded to Buy from Neutral at UBS

UBS analyst Gregg Orrill upgraded Portland General Electric (POR) to Buy from Neutral with a price target of $50, up from $47. The stock has de-rated to a two standard deviation discount on relative price-to-earnings multiple over renewable procurement concerns associated with tariffs, the analyst tells investors in a research note. The firm believes Portland is pricing in procurement of 525 MW with a $1.1 B exposure to a tariff disallowance. UBS, however, expects the company to use a range of suppliers, and find available offsets to tariffs, bringing the total tariff exposure down to $200M-$300M. As Portland’s tariff cost mitigation becomes clearer, the stock should re-rate from a 30% discount to closer to 15%, contends the firm.