Deutsche Bank Says Buy PG&E Corporation (PCG)

Deutsche Bank is out with a research report and it has a Buy rating on shares of PG&E Corporation PCG. In a note sent to clients, Deutsche Bank writes, "While utility stocks lagged the market as a group in 2010, performance between the individual sub-categories was highly divergent with regulated names (+10% on average) beating diversified (-7%) and pure-play merchant generators (-20%) by a significant margin. Absent signs of an improvement in generator fundamentals (most obviously a turn in natural gas prices) we would continue to favor regulated names going into 2011. Within the regulated group we would currently emphasize higher growth profiles over yield plays – a trade which has been working since 10-Year Treasury yields started moving up in October. Buy-rated names we would emphasize within this theme are CMS, ITC and PCG." Shares of PCG gained 32 cents yesterday to close at $48.42, a gain of 0.67%.