Barclays raises NiSource stock price target to $44 on generation contracting upside

Published 04/08/2025, 18:10
Barclays raises NiSource stock price target to $44 on generation contracting upside

Investing.com - Barclays (LON:BARC) raised its price target on NiSource (NYSE:NI) to $44.00 from $42.00 on Monday, while maintaining an Overweight rating on the utility company’s stock. The stock, currently trading near its 52-week high with a market capitalization of $20.38 billion, has delivered an impressive 18.34% return year-to-date.

The investment bank noted that while it does not expect a generation company announcement during NiSource’s second-quarter results due in two days, the company appears well-positioned to capture contracting upside sometime in the third quarter of 2025. According to InvestingPro, the company maintains a GOOD financial health score and has consistently paid dividends for 39 consecutive years.

Barclays anticipates near-term progress in tariff outcomes for NiSource, which could provide additional clarity for investors on the company’s regulatory framework.

The firm quantified the potential generation company’s worth at approximately $0.22 per share to the outlook at a 2.6 gigawatt ramp, supporting its positive view on the stock.

NiSource remains rated Overweight at Barclays heading into the second half of 2025, reflecting the bank’s confidence in the utility’s growth prospects and strategic positioning.

In other recent news, NiSource Inc. announced a quarterly dividend of $0.28 per share, scheduled for payment on August 20, 2025, to shareholders recorded by July 31, 2025. At the company’s annual shareholder meeting, all nominated directors were successfully elected, with each nominee receiving strong majority support. Barclays raised its price target for NiSource to $44, maintaining an Overweight rating, citing potential upside from contracting opportunities. Jefferies also adjusted its price target for NiSource, initially raising it to $48 due to potential data center announcements, but later reducing it to $45 while maintaining a Buy rating, highlighting ongoing customer engagements and the progress of its Generation Company. Analyst Julien Dumoulin-Smith from Jefferies remains optimistic about NiSource’s future, noting a forecasted 9.2% compound annual growth rate in earnings per share from 2025 to 2029, which exceeds the company’s guidance and consensus estimates.

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