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Mizuho Securities commented on PG&E Corp. (NYSE:PCG) after the announcement that CFO Chris Foster resigned to become CFO at CenterPoint Energy (NYSE:CNP).
This was unexpected to the brokerage, which expects PG&E shares to be weak given (1) this is the second recent departure of the company’s executive, (2) recent management changes in the sector have caused stock selloffs, and (3) all the positive catalysts are expected in the second half of the year so it will take some time for investors to focus on the value drivers.
While reiterating its Buy rating, the firm believes the CFO’s departure may delay any material rerating until H2/23.
Carolyn Burke, who joined PG&E in January, will replace Foster as CFO, effective May 4. The company hosted an AMC investor call where they highlighted Burke’s experience with companies that have recently emerged from bankruptcy.
“We don’t expect any major changes to PCG’s capital plan or earnings trajectory with a new CFO but the timing of it may surprise some investors,” said Mizuho.
PG&E shares closed nearly 2% higher today.
