Report published September 2, 2026
PG&E Corp. (PCG): Goldman Sachs Equity Research on Strategic Review and 2027 Capex Cut
Source and citation context
- Issuer
- Goldman Sachs
- Report date
- September 2, 2026
- Analysis as of
- September 1, 2026
Authors / editors: Carly Davenport, Jaya Patel, Ananya Jaison
Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Following PG&E's investor call, Goldman Sachs maintains a Buy rating while lowering its price target from $24 to $23. The company announced a $2 billion capex cut for 2027, introduced 2027 EPS guidance of $1.78–$1.82, and initiated a board-led strategic review amid ongoing legislative uncertainty in California.
Key Takeaways
- 1.PG&E lowered planned 2027 capex by $2 bn (to $11.4 bn) to reduce high-cost debt financing needs by ~$1 bn each at the utility and parent holding company levels.
- 2.Management reaffirmed 2026 EPS guidance at $1.64–$1.66, initiated 2027 EPS guidance of $1.78–$1.82 (~9% growth), and suspended long-term guidance beyond 2027 pending a strategic review.
- 3.PG&E's board authorized a comprehensive strategic review to evaluate regulatory, financial, corporate structure, and capital allocation alternatives to unlock value and target investment-grade credit ratings.
Table of Contents
- Key takeaways
- Our view
- Model Updates
- Valuation and Key Risks
- Disclosure Appendix
Report data
GS Forecast — as of September 1, 2026.
| Metric | Estimate | Context |
|---|---|---|
| 12m Price Target | 23.0 USD | Lowered from $24.00 to $23.00. |
| Closing Stock Price | 14.06 USD | Base price for upside calculation of 63.6%. |
| 2027 Planned Capital Spending | 11.4 billion USD | Reduced by $2.0 billion from $13.4 billion to lower high-cost borrowing needs. |
| 2027 EPS Guidance Range | 1.78 - 1.82 USD | Reflects ~9% EPS growth at midpoint. |
| 2026 EPS Guidance Range | 1.64 - 1.66 USD | Reaffirmed full-year 2026 guidance. |
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Authors / Editors
Reported Data Context
- 12m Price Target: 23.0 USD (12-month forward) · Source: Goldman Sachs Research
- Closing Stock Price: 14.06 USD (2026-09-01) · Source: FactSet
- 2027 Planned Capital Spending: 11.4 billion USD (2027) · Source: Company data
- 2027 EPS Guidance Range: 1.78 - 1.82 USD (2027) · Source: Company data
- 2026 EPS Guidance Range: 1.64 - 1.66 USD (2026) · Source: Company data
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