UPDATE: Ladenburg Thalmann Initiates Pinnacle West Capital at Neutral

Ladenburg Thalmann is out with its report today on Pinnacle West Capital (NYSE: PNW), initiating PNW at Neutral.

In a note to clients, Ladenburg Thalmann writes, "We initiate coverage of PNW with a NEUTRAL rating. Our price target of $45 per share is based on a 2012/2013 target P/E ratio of 13.3/12.9x our 2012/2013 EPS of $3.39/$3.50. In our opinion, PNW shares are fairly valued in the near-term considering APS rate case risks as the case progresses through the procedural schedule over the next 6-9 months."

Ladenburg Thalmann maintains a $45 PT on PNW.

Shares of PNW closed Thursday at $43.73.