Analyst Maintains 'Equal Weight' Rating on PG&E Corporation (PCG), Price Target Reduced

PG&E Corporation (NYSE:PCG) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.

PG&E Corporation (NYSE:PCG) provides natural gas and electric service to residential and business customers in northern and central California.

On December 16, Morgan Stanley slightly cut its price target on PG&E Corporation (NYSE:PCG) from $21 to $20, but maintained an ‘Equal Weight’ rating on the shares. With Big Tech pouring hundreds of billions of dollars into the AI race, the analyst firm highlighted that the performance of the utilities group will be heavily driven by data centers and growth upside in 2026. The analyst advised investors to consider utilities with exposure to data center demand growth, and cautioned against companies facing heavier affordability scrutiny, given that 2026 is an election year.

Earlier on December 12, JPMorgan also trimmed its price target on PG&E Corporation (NYSE:PCG) from $22 to $21, still indicating an upside potential of almost 33% from the current share price. The firm also maintained its ‘Overweight’ rating on the shares.

On a positive note, PG&E Corporation (NYSE:PCG) doubled its quarterly dividend to $0.05 per share on December 12, payable on January 15, 2026, to all shareholders as of the December 31 record. PCG currently boasts an annual dividend yield of 1.26%.

While we acknowledge the potential of PCG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.