© Reuters. PG&E extends plunge to 21-month lows on worry over California fire liability
- Pacific Gas & Electric (PCG -6.6%) continues its precipitous decline in the wake of the northern California fires, tumbling to its lowest since January 2016; shares have slumped 22.5% in just three days.
- Goldman Sachs (NYSE:GS) removes PG&E from its Conviction Buy List and cuts its price target to $65 from $72 given the potential impact on cash flow from the California wildfires and with the stock lacking catalysts, but maintains its Buy rating as it sees the selloff as overdone.
- Wells Fargo (NYSE:WFC) trims its PCG price target to $67 from $79 to reflect substantial uncertainty related to potential liabilities from the fires but reiterates its Outperform rating.
- J.P. Morgan says shares are worth $60 in an “extreme liability scenario” and assigns a 75% chance of the company being found liable for the wildfires; the firm cuts its price target to $66 from $76 while reiterating its Overweight rating but admits the wildfires will a “major overhang” for at least the better part of 2018.
- Now read: PG&E – Not Buying The Dip, Even If It Is An Overreaction