On Monday, Ladenburg Thalmann adjusted the price target for Pinnacle West Capital (NYSE: NYSE:PNW), bringing it down to $68 from the previous $69, while keeping a Neutral stance on the stock.
This change follows the company's announcement of their full-year 2023 results and the release of the final order information for the 2022 general rate case (GRC) of Arizona Public Service (APS), their principal subsidiary. In addition, the company provided guidance for the year 2024.
Pinnacle West Capital also disclosed a significant $650 million common stock offering on February 28, 2024. This move aims to support a balanced capital structure for APS and fund expanded accretive investments.
In response to these developments, Ladenburg Thalmann has revised the earnings per share (EPS) estimates for the company, increasing them by $0.24 for 2024 and by $0.16 for 2025, while reducing the 2026 estimate by $0.07.
The company's recent financial release and the subsequent stock offering come at a time when Arizona is experiencing rapid residential and commercial development. This growth is expected to contribute positively to the economic expansion within APS's service area. Despite the adjustments to the EPS estimates and the slight reduction in the price target, the analyst maintains a Neutral rating on Pinnacle West Capital shares.
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