- PG&E (PCG -8.2%) remains mired in steep losses even as the stock is defended at Morgan Stanley (NYSE:MS) in light of recent weakness related to the California wildfires.
- Morgan Stanley analyst Stephen Byrd believes PG&E shares likely have overreacted, noting that the stock reflects ~$5.6B in fire-related damage, a total Byrd thinks is greater than likely would be incurred by its shareholders.
- The firm maintains its Overweight rating on PCG but also believes fire-related liability worries will continue to be a significant overhang, as it will take many months for an investigation to be completed.
- Schaeffer's notes that a number of strikes are seeing heavy trading, topped by the October 60 call, and buy-to-open activity looks likely - meaning a number of bulls expect the stock to rebound back to the round $60 level before Friday's close, when the front-month contracts expire.
- Now read: PG&E - Not Buying The Dip, Even If It Is An Overreaction
Original article