11:07 AM EDT, 09/18/2025 (MT Newswires) -- PG&E ( PCG ) now has a "much more favorable" risk-reward profile, with the passing of the California Senate Bill 254 that deals with key short-term concerns over wildfire fund replenishment, Morgan Stanley said in a Thursday note.

The bill "meaningfully improves" California's fire risk framework, with a new $18 billion Wildfire Fund Continuation Account, according to the note.

"We are now more comfortable with PCG's investment case," Morgan Stanley said, noting the replenished fund and the current discount to the sector's price-earnings ratio. The company also has can also raise capex without rate hikes for customers, through financial plan flexibility and potential cost reductions, the investment firm added.

Morgan Stanley upgraded PG&E ( PCG ) to equal-weight, from underweight, and raised its price target to $20 from $19.

Price: 14.98, Change: -0.12, Percent Change: -0.76