BofA Lowers Price Target for Portland General Electric Amid Earnings Outlook

Price Target Adjustment#

BofA Securities has lowered its price target for Portland General Electric Company (NYSE:POR) from $49 to $48, while maintaining an Underperform rating. Currently, the stock trades at $50.57, which is above both the new price target and InvestingPro’s Fair Value estimate of $45.26. This suggests that the shares may be considered overvalued at their current price.

Earnings Expectations#

The firm anticipates that Portland General Electric will report earnings per share (EPS) of $0.71 for the first quarter of 2026. This is a decrease from the adjusted EPS of $0.77 in the first quarter of 2025 and below the current consensus estimate of $1.00. The previous year’s first-quarter result of $0.91 was adjusted for factors like equity dilution and one-time power results. Despite these challenges, the utility has a strong history, having raised its dividend for 20 consecutive years, currently yielding 4.1%.

Factors Influencing Performance#

BofA Securities expects some positive factors in the upcoming quarter, including reduced operational costs and increased revenues from the Seaside battery investment. However, these gains may be countered by milder weather, increased depreciation and interest expenses, and adjustments related to non-qualified benefit plans.

Strategic Developments#

The firm does not anticipate any updates from Portland General Electric regarding its financial or strategic guidance. Investors are looking for more information about the company's Holding Company application in Oregon and its proposed asset acquisition in Washington. Recently, Portland General Electric reported adjusted earnings of $3.05 per diluted share for 2025, down from $3.14 the previous year, with total revenue of $3.56 billion. The company is also moving forward with a $1.9 billion acquisition of PacifiCorp’s utility operations in Washington and has priced a public offering of 9.4 million shares at $50.70 each. Additionally, Robert Hoglund has been nominated to join the board of directors, pending election in May 2026.