BUZZ-PG&E rises as BMO joins bull camp

** PG&E Corp's PCG.N shares up 1.3% premarket to $17.40 as BMO initiates coverage at 'outperform', saying it sees Oakland, California-based firm as a core holding in the regulated utility sector

** BMO sets PT at $21, implying 22% upside to stock's last close

** PCG shares provide investors exposure to "a rare deep value opportunity with premium visible growth," BMO writes in note to clients

** BMO says its 5-yr forecast (2024-2028) of consolidated EPS growth of ~9.2% and rate base growth of ~10% is consistent with co's long-term guidance of least 9%

** Despite PCG's leading growth profile, top-tier management and substantial improvement in wildfire risk exposure through both physical risk mitigation efforts and the state's unique wildfire legislative framework, its shares remain at a ~34% discount to peers, BMO says

** PCG shares have been pressured recently as multiple fires raged through the Los Angeles area, while Jefferies warned the extent of Edison International's EIX.N liabilities could breach the size of the California Wildfire Fund

** PCG, which in 2020 emerged from a bankruptcy prompted by deadly blazes linked to its equipment, was offered a $15 bln loan last month by the U.S. DOE to bolster the power grid

** Now, 14 of 20 brokerages covering PCG rate stock "strong buy" or "buy", rest have "hold", per LSEG data; median PT is $24

** PCG shares lost ~16% last week, including 10.8% drop on Fri to close at a 6-mth low. Stock rose 12% in 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))