Mizuho raises Pinnacle West Capital stock price target on guidance boost

Mizuho Securities has raised its price target for Pinnacle West Capital (PNW) to $109, up from the previous $103, while keeping a Neutral rating on the stock. PNW's shares are currently trading at $107.61, close to their 52-week high of $111.16, and have a market capitalization of $13.06 billion. The company reported strong third-quarter 2026 earnings per share (EPS) of $3.49, exceeding Street estimates of $3.31.

The increase in earnings was driven by higher sales, with $0.35 contributing to the total, weather factors adding $0.09, and lower operations and maintenance costs adding $0.03. However, these gains were somewhat offset by increased depreciation and amortization ($0.11), higher interest expense ($0.06), and dilution ($0.07). Pinnacle West Capital has also increased its guidance for 2026 earnings per share to $5.05 to $5.25, up from the earlier range of $4.55 to $4.75.

This upward revision was primarily due to an optimistic forecast for retail sales growth, now projected at 6% to 8%. Despite the increased valuation, the stock appears overvalued compared to its fair value, as per InvestingPro analysis. The company has a remarkable track record of raising dividends for 15 consecutive years and currently offers a yield of 3.49%.

For investors seeking more in-depth analysis, the Pro Research Report on PNW is available for a comprehensive view, along with 1,400+ other US equities. The company is preparing to disclose capital expenditures and financing details once its rate case is concluded. Pinnacle West Capital surpassed Wall Street's expectations for the third quarter of 2026, raising its full-year outlook.

The utility reported adjusted earnings of $3.49 per share, surpassing analyst projections of $3.20. Revenue grew to $1.97 billion, surpassing the forecasted $1.86 billion, fueled by stronger-than-expected retail sales, customer growth, and beneficial weather conditions in Arizona. These achievements demonstrate the utility's strong performance in the recent quarter.

Pinnacle West's decision to raise its earnings guidance signals confidence in sustained positive trends, making its recent results noteworthy in the eyes of analysts and investors alike.