Jefferies Stays Cautious on PG&E; Regulatory Overhang Persists (PCG)

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Electric and natural gas utility operator PG&E Corporation ( PCG ) on Thursday received some tepid commentary from analysts at Jefferies & Co.

The firm reiterated its "Hold" rating on PCG and cut its price target from $47.50 to $45. That new target suggests a small upside to the stock's Wednesday closing price of $43.09.

A Jefferies analyst commented, "Last Friday the Consumer Protection Safety Division (CPSD) filed a motion with a California Public Utilities Commissioner (CPUC) Administrative Law Judge ( ALJ ) to consolidate their fine and/or penalty recommendations into a single filing. There are currently three different proceedings going on related to the San Bruno incident which has created regulatory overhang for the stock."

PG&E shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of PG&E ( PCG ) have a 4.22% dividend yield, based on last night's closing stock price of $43.09. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $46-$47 price levels.

PG&E Corporation ( PCG ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: ALJ , PCG

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