We lower our 12-month target price by $10 to $71, 18.2x our projected 2022 EPS, in line with peers and a slight premium to PNW's 5-year average forward multiple. We lower our 2021 EPS estimate by $0.01 to $5.20 and 2022's by $0.71 to $3.90, the midpoint of PNW's updated guidance range from Q3 earnings call. The company's recent adverse rate case outcome in Arizona, which will reduce electric base rates by $119.8 million vs. an initial request to raise rates by $68.6 million, is expected to negatively impact 2022 earnings by $0.90 per share. PNW plans to defer any external equity issuances until at least 2024, and its 2022-2024 capital plan is relatively unchanged at this time. We expect new business and population growth in Arizona to support PNW's revenues and look favorably on its growing clean energy portfolio (500 MW energy storage, 310 MW solar, 438 MW wind) expected to be in service by 2024. Down 16% year-to-date, the shares offer a dividend yield just above 5%.
|Covetrus Says it Gets Proposal From Clayton, Dubilie...|
|--April Unemployment Rate Fell in 13 US States, Payr...|
|Marvell Technology Likely to See Fiscal Q1 Beat, Opp...|
|Research Alert: CFRA Keeps Buy Opinion On Shares Of ...|
|Terreno Realty Acquires Newark Industrial Property f...|