California utilities slide after wildfire bill amendments, broker downgrades
PCG•Broker views turn more cautious
Mizuho cut ratings on PG&E and Edison International to "neutral" from "outperform" and lowered price targets to $16 from $21 and $70 from $86, respectively.
TD Cowen said the legislation offers "no meaningful incremental benefit" for utilities versus the current framework.
BMO downgraded PG&E to "market perform" from "outperform" and cut its price target to $21 from $28.
PG&E comments on wildfire liability risks
PG&E said the bill does not adequately address financing risks tied to California's wildfire liability framework.
Year-to-date, PCG was up 3.3%, EIX up 16.9% and SRE down 4.5% as of the last close.
Utilities fall after bill amendments and downgrades
Shares of California utilities fell premarket after lawmakers amended Senate Bill 492, preserving insurers' ability to recover wildfire-related claims from utilities.
PG&E Corp. (PCG.N) was down 17.8%, Edison International (EIX.N) down 13.1% and Sempra (SRE.N) down 3.3%.
