Key Stats for PG&E Stock
- Price Change: -2.1%
- Current Price: $15
- Advanced Model Price Target: $21
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What Happened?
Shares of PG&E Corporation (PCG) traded lower on Monday, falling 2.1% to close at $15.
The decline comes as investors weigh the company’s massive infrastructure reinvestment plan against its long-term dividend commitments.
The utility giant recently reported Q3 results that highlighted continued operational momentum across its California service territory.
CEO Patti Poppe emphasized that the company is currently on “full speed” to deliver for both customers and investors.
While competitors like Edison International (NYSE:EIX) and Sempra (NYSE:SRE) manage similar regulatory environments, PG&E is focused on its 2028 dividend payout target.
The company intends to grow its dividend to a 20.0% payout ratio by 2028 and maintain that level through 2030.
See analysts’ growth forecasts and price targets for PG&E stock (It’s free!) >>>
Is PG&E Undervalued Today?
On the latest earnings call, CEO Patti Poppe expressed high confidence in the team’s ability to execute on its core mission.
He stated: “we’re on full speed here at PG&E. Our entire team is working to deliver for our customers and for you, our investors every day.”
CFO Carolyn Burke clarified the firm’s long-term capital allocation strategy regarding shareholder returns.
He noted: “we are growing the dividend to a 20% payout to ’28 and then maintaining it through 2030 at 20%.”
The company remains focused on reducing wildfire risk and improving safety metrics to ensure sustainable regulatory support.
Read the full PCG Transcript on TIKR to see the 2030 dividend roadmap >>>
According to TIKR’s Advanced Valuation Model, the recent price dip represents a compelling entry point for value investors.
- Advanced Model Price Target: $21
- Current Price: $15
- Potential Upside: +37.7%
The investment case for PG&E (PCG) has transitioned from a restructuring story into a predictable, growth-oriented utility.
The model suggests that the market is still catching up to the long-term cash flow benefits of the company’s undergrounding and safety initiatives.
Valuation Model Deep Dive
- The Fair Value Gap: At $15, the stock is trading at a significant discount to its $21 intrinsic value, offering a rare margin of safety in the utility sector.
- The Growth Reality: The model assumes a 3.6% Revenue CAGR, which is consistent with the company’s 10-year historical average of 3.6%.
- The Profitability Check: The model targets a 15.2% Net Income Margin, a figure supported by the company’s Mid-Case forecast and improved operational efficiency.
If PG&E (PCG) continues to exceed its safety targets, it could further accelerate the intrinsic value gap toward the bull case.
Conclusion: The utility turnaround is in the middle innings. With a clear dividend roadmap through 2030 and a valuation model pointing to $21, PG&E stock offers a compelling mix of defensive stability and significant capital appreciation potential.
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How Much Upside Does PG&E Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
