California utility PG&E edges down as UBS downgrades to 'neutral'

PG&E Corp's PCG.N shares down 1.1% at $17.02 on Weds after UBS cuts rating to 'neutral' from 'buy'

Brokerage reduces PT of Oakland, California-based electric utility by $3 to $19

UBS cites potential depletion of the state's wildfire insurance fund due to the Eaton fire, wildfire volatility and absence of catalysts for the stock to re-rate for the downgrade

Brokerage says it prefers Edison International EIX.N, which it rates 'buy', as the analysts say they're consolidating their views on California utilities

Though UBS adds that PCG's investment outlook has several attributes including 9% EPS growth, no requirement for equity to 2028 and strong wildfire mitigation record over the last three years

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

Of 19 brokerages covering PCG, recommendation breakdown is 12 "strong buy" or "buy", 6 "hold" and 1 "sell; median PT of $22 down from $24.50 on Dec 19

With move on the session, shares down ~16% YTD compared to 3% advance in S&P 500 Utilities sector .SPLRCU