PG&E (PCG) Stock Drops 16% After California Wildfire Bill Strips Utility Liability Protection
TLDR
- PG&E stock dropped 16% in premarket trading to $13.97 after California’s State Assembly amended Senate Bill 492 to exclude liability protection for utilities.
- The amended bill does not include Gov. Gavin Newsom’s proposal to block insurance companies from suing utilities over wildfire claims.
- Edison International and Sempra also fell 15% and 3.6% respectively.
- Mizuho downgraded PG&E, Edison, and Sempra to Neutral from Outperform; Morgan Stanley warned of “significant downside” for California utilities.
- UBS held its Buy rating and $22 price target on PG&E, noting the legislative session has not yet concluded.
PG&E stock fell 16% to $13.97 in premarket trading on Monday after California’s State Assembly amended Senate Bill 492 and removed liability protections that utility investors had been counting on.
The amended bill does not include a proposal from Gov. Gavin Newsom that would have blocked insurance companies from suing utilities over wildfire-related claims. That omission is at the heart of investor concern.
… Continue reading the full article at the original source below.
This content is automatically aggregated. Full credit goes to the original publisher (coincentral.com).
