Morgan Stanley Updates PG&E (PCG) Outlook Amid Data Center Growth and Utility Sector Laggard Performance

PG&E Corporation (NYSE:PCG) is one of the best inexpensive stocks to buy now. On January 21, Morgan Stanley raised the price target on PG&E to $21 from $20 while keeping an Equal Weight. Morgan Stanley is refreshing its outlook on North American Regulated & Diversified Utilities and Independent Power Producers. The firm noted that the utility sector trailed the S&P 500’s performance in December 2025, leading to updated coverage across the group.

Earlier on December 16, Morgan Stanley lowered its price target on PG&E to $20 from $21 while maintaining an Equal Weight. The firm informed investors that utility performance in 2026 will be largely influenced by data center demand and potential growth upside.

Additionally, on December 12, JPMorgan reduced its price target for PG&E Corporation (NYSE:PCG) to $21 from $22 with an Overweight rating. This adjustment occurred as the firm updated its financial models across the North American utilities group.

PG&E Corporation (NYSE:PCG), through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to customers in northern and central California in the US.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.