PSEG price target raised to $70 from $68 at Wells Fargo

Wells Fargo raised the firm’s price target on PSEG to $70 from $68 and keeps an Overweight rating on the shares. The firm cites the impact of higher Regulated Electric peer group price to earnings multiples. Wells notes that PSEG’s 3,700 MW non-regulated nuclear fleet provides strong FCF with upside optionality. The nuclear FCF provides an attractive source of equity capital for the utility operations. As a result, PSEG is able to execute on the utility’s large capex plan without any need for new equity, the firm adds.