UBS Makes Modest Value Goal Improve on Pinnacle West (PNW)

Pinnacle West Capital Company (NYSE:PNW) is included among the many Finest Shares for a Dividend Achievers Record.

On December 17, UBS nudged its worth goal on Pinnacle West Capital Company (NYSE:PNW) as much as $95 from $94. The agency stored a Impartial ranking on the inventory.

In the course of the firm’s third-quarter 2025 earnings name, administration laid out plans for a brand new era web site close to Gila Bend. The venture might add as a lot as 2,000 megawatts of pure gasoline capability. Executives additionally talked via regular progress on long-term transmission upgrades and baseload investments. The Desert Southwest enlargement venture stays on monitor, in line with the replace.

Pinnacle West Capital Company (NYSE:PNW) posted earnings of $3.39 per share for Q3 2025. Outcomes have been lifted by increased transmission income and stable gross sales progress throughout buyer teams. A few of that energy was offset by decrease weather-related gross sales in contrast with final 12 months, together with increased curiosity expense, decrease pension and OPEB advantages, and a bigger share rely.

In the course of the quarter, gross sales tendencies appeared wholesome as soon as the climate was normalized. Whole progress got here in at 5.4% for the quarter. Industrial and industrial gross sales rose 6.6%, and residential gross sales elevated 4.3%. 12 months up to now, residential gross sales are up 2%. The corporate additionally raised its full-year outlook. Pinnacle West Capital Company (NYSE:PNW) now expects 2025 earnings of $4.90 to $5.10 per share, up from the prior $4.40 to $4.60 vary. Administration pointed to sturdy gross sales, warmer-than-normal climate, increased transmission income, and added contributions from El Dorado.

Pinnacle West Capital Company (NYSE:PNW) is a utility holding firm targeted on electrical energy. Most of its operations run via Arizona Public Service, which supplies regulated retail and wholesale energy throughout Arizona.

Whereas we acknowledge the potential of PNW as an funding, we imagine sure AI shares supply higher upside potential and carry much less draw back threat. For those who’re on the lookout for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.

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Disclosure: None.