Citi analyst Praful Mehta upgraded PG&E to Buy from Neutral with a price target of $15, up from $11. The shares closed Tuesday up 85c to $11.92. The company's potential agreement with bondholders is a "big step forward," Mehta tells investors in a research note. The "constructive negotiations" referenced in the bankruptcy court yesterday suggest a deal with bondholders is imminent, says the analyst. Mehta believes that of even if the shareholders give a concession to bondholders, the strategic value of the deal is "significant." Further, a deal would limit the power of the California governor, he adds.

"Our focus on safety and reducing wildfire risk continues every day as we deliver for our customers and our hometowns here in California. We remain committed to building a clean, climate-resilient energy system to meet our customers' future needs at the lowest price for them," said PG&E Corporation CEO Patti Poppe.