Analysts Bullish on Utilities Sector with Buy Ratings for CMS Energy and PG&E

Analysts at Bank of America Securities and Citi have expressed bullish sentiments on Utilities companies CMS Energy (CMS) and PG&E (PCG). CMS Energy has a Moderate Buy analyst consensus with a price target of $78.00, while PG&E has a Hold analyst consensus rating with a $19.71 average price target, implying a 50.0% upside from current levels.

Analysts at Bank of America Securities and Citi have shown optimism towards the utilities sector, particularly CMS Energy (CMS) and Pacific Gas and Electric Company (PG&E). CMS Energy, a Michigan-based energy company, has received a Moderate Buy rating from analysts with a price target of $78.00 [1]. Meanwhile, PG&E, which operates primarily in California, has been given a Hold rating with an average price target of $19.71, indicating a potential 50.0% upside from current levels [2].

CMS Energy, which operates through segments like Electric Utility, Gas Utility, and Enterprises, has seen its earnings per share (EPS) estimates for Q3 2025 increase to $0.89 from a previous estimate of $0.86 [1]. This optimism is backed by other analysts who have also raised their price targets. For instance, UBS Group increased its target price to $80.00, BMO Capital Markets to $79.00, Evercore ISI to $76.00, Wells Fargo & Company to $82.00, and Scotiabank to $81.00 [1]. The company's current EPS for the quarter ending April 24, 2025, was $1.02, slightly missing the consensus estimate of $1.05 [1].

PG&E, on the other hand, has made significant strides in reducing methane emissions. The company reported a 42% reduction in methane emissions from its natural gas pipeline system in 2024 compared to a 2015 baseline, surpassing the 20% reduction goal set by California regulators for 2025 [2]. This achievement underscores PG&E’s commitment to environmental sustainability and aligns with California’s broader climate goals. The company has implemented advanced leak detection technologies and rapid repair programs to achieve this milestone [2].

Both CMS Energy and PG&E have shown promising developments that have caught the attention of analysts. While CMS Energy's Moderate Buy rating suggests a cautious optimism, PG&E's Hold rating with a significant upside potential indicates a balanced view. Investors should closely monitor these developments and consider the long-term implications of these ratings and targets.

References:
[1] https://www.marketbeat.com/instant-alerts/q3-earnings-estimate-for-cms-energy-issued-by-zacks-research-2025-07-09/
[2] https://oilprice.com/Company-News/PGE-Hits-Methane-Reduction-Goal-Ahead-of-Schedule.html