PG&E downgraded by UBS as wildfire reform catalyst fades

What Brokers Say Utilities Written by: Ian Lyall 13:03 Wed 23 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. PG&E Corp ( NYSE:PCG ) View Price & Profile PG&E downgraded by UBS as wildfire reform catalyst fades Published: 13:03 23 Sep 2026 EDT California utility PG&E Corp (NYSE:PCG) was downgraded to 'neutral' from 'buy' by UBS, which lowered its price target to $14 from $19 as the bank sees a growing risk that California wildfire liability reform will not advance this year. UBS said the likelihood of action on wildfire liability legislation had declined after Governor Gavin Newsom recently discussed a potential special session focused on artificial intelligence (AI) rather than wildfire reform. The bank also pointed to gubernatorial candidate Xavier Becerra becoming more vocal on wildfire liability reform, which UBS said could further delay the potential catalyst for PG&E. PG&E Corp (NYSE:PCG) shares traded at $12.55 on Wednesday. UBS said the risk to its call was that consensus builds around wildfire legislation and leads to action during a special session before the end of the year. The bank also cited PG&E's decision to rescind its long-term earnings-per-share growth guidance when it announced a strategic review in September. UBS lowered its long-term EPS growth assumption to 8.5% from 9.0% after incorporating the company's $2 billion capital expenditure deferral from 2027 through 2030. The bank cut its 2028 EPS estimate to $1.90 from $1.95 and reduced its five-year capital expenditure forecast by $6 billion, or 8%, to $65.5 billion. UBS said the $6 billion reduction represented a 26% cut to PG&E's capacity and new business capital expenditure category. The revised $14 price target reflects a 49% discount to the utility group multiple, based on 7.9 times UBS's $1.90 2028 EPS estimate, less $1 for non-earning rate base and the net present value of wildfire fund contributions. UBS said the 25% reduction in its price target reflected lower EPS growth, increased regulatory risk, a lower group average price-to-earnings multiple and the reduction in its 2028 EPS estimate. The bank also said tax-loss selling pressure and interest rate risk made PG&E shares incrementally less attractive, adding to the reasons for its downgrade. PG&E's investment case therefore remains closely tied to the timing of California wildfire liability reform, while the company's lower capital spending and reduced long-term growth assumptions have weakened UBS's valuation outlook. Continue reading