UBS on Wednesday increased its price target for Portland General Electric Company (NYSE: POR) to $55 from $53 but kept a Neutral rating on the shares. The change reflects updated assumptions around operating savings, higher ratebase growth and the company’s stated timetable for balance-sheet repair.
Valuation and income metrics
InvestingPro data cited by the analyst shows the utility trading at a price-to-earnings ratio of 18.68 and offering a 4.12% dividend yield. That same data flags the stock as slightly overvalued relative to its Fair Value assessment.
Drivers cited by the analyst
On the company’s year-end call, management outlined several financial drivers UBS identified as constructive. The firm highlighted the near-completion of Portland General Electric’s balance-sheet repair phase, targeted for 2027, and stronger-than-expected ratebase growth. UBS also noted a forecasted $25 million in operations and maintenance (O&M) savings for 2025 as an explicit contributor to the improved picture.
UBS pointed to the company’s leverage as part of the context for these developments: InvestingPro data indicates a debt-to-equity ratio of 1.28, underscoring the material debt load that the balance-sheet repair program aims to address.
Revised earnings outlook
Reflecting the expected effects of the cost savings and ratebase expansion, UBS now projects annual EPS growth of 5.4% for 2026 through 2030. That replaces the broker’s prior projection of 4.7% annual EPS growth for the 2025-2029 period. The analyst described the updated assumptions as supporting improved EPS growth for the utility.
Company financials and strategic moves
Portland General Electric reported adjusted earnings of $3.05 per diluted share for 2025, down from $3.14 in 2024. Revenue for the year totaled $3.56 billion, with management attributing a 14% year-over-year increase in industrial demand in part to data-center activity. The company also reported that severe weather in the fourth quarter reduced earnings by $0.17 per share.
Separately, Portland General Electric disclosed a $1.9 billion acquisition of PacifiCorp’s utility operations in Washington state, and it initiated earnings guidance for 2026. The company has also priced a public offering of 9,467,455 shares at $50.70 apiece related to forward sale agreements with Wells Fargo Bank and Bank of America.
Context and immediate implications
Taken together, UBS’s modest uplift in the price target and the revised EPS trajectory reflect a convergence of operational cost savings, ratebase growth and an explicit timetable for balance-sheet repair. The broader set of corporate actions - the Washington-state acquisition and the public share offering tied to forward sale agreements - add to the company’s active financial and strategic agenda.
Key takeaways
- UBS raised its price target on POR to $55 from $53 while keeping a Neutral rating.
- Analyst points to $25 million of expected O&M savings in 2025, near-completion of balance-sheet repair in 2027 and stronger ratebase growth as drivers for a higher EPS outlook.
- Portland General Electric reported adjusted 2025 EPS of $3.05 and revenue of $3.56 billion amid a 14% rise in industrial demand; the company also disclosed a $1.9 billion acquisition and a priced public offering.