As reported earlier, RBC Capital analyst Insoo Kim upgraded Pinnacle West to Outperform from Sector Perform, saying the investors undervalue the company's "visible and above-average growth profile, constructive regulatory environment, and robust balance sheet". Kim adds that the stock deserves a premium to its peers as the company can expand its gross margins through its well timed generation project recovery as well as expected positive April ruling by the Arizona Corporation Commission on its filing for Four Corners environmental retrofits. Kim also nudged his price target on Pinnacle West down by $1 to $87 on valuation.