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On Monday, BMO Capital Markets adjusted their price target on Eversource Energy (NYSE:ES) shares, increasing it slightly from $71.00 to $72.00, while maintaining a Market Perform rating on the stock. Currently trading at $57.86, the stock sits well below analyst targets ranging from $47 to $85. According to InvestingPro data, Eversource offers a notable 5.2% dividend yield and has maintained dividend payments for 27 consecutive years. The firm’s analyst noted that Eversource is expected to present its first-quarter results for 2025 on May 2nd, with projections aligning with the FactSet and Bloomberg median consensus earnings per share (EPS) of $1.50 and $1.51, respectively. This would mark an approximate 1% year-over-year increase in earnings. InvestingPro analysis shows the company maintains a "Fair" overall financial health score, though it operates with significant debt and short-term obligations exceeding liquid assets.
The analyst anticipates that the upcoming quarterly results will not offer significant updates on Eversource’s long-term outlook, as the company had already provided a refresh of its capital plan and financing in the fourth quarter of 2024. Instead, attention is likely to turn towards management’s discussion of several key topics during the earnings call. These include the progress and financial exposure associated with the Revolution Wind project, legislative developments in Connecticut, particularly around securitization, and updates on the staffing of the Public Utilities Regulatory Authority (PURA) as well as regulatory processes.
Eversource Energy, a utility holding company, is poised to maintain its Market Perform rating according to BMO Capital Markets. The slight increase in the target price to $72.00 is based on a mark-to-market (MTM) and sum-of-the-parts (SOTP) valuation approach. Investors and stakeholders are now looking ahead to the May 2nd release of the company’s financial performance in the first quarter of 2025 to assess its standing and future prospects. For deeper insights into Eversource’s valuation and prospects, InvestingPro subscribers can access comprehensive research reports with detailed analysis of the company’s financial health, growth potential, and market position.
In other recent news, Eversource Energy reported its fourth-quarter earnings for 2024, revealing earnings per share (EPS) of $1.01, surpassing the consensus estimate of $0.99. Despite meeting Scotiabank (TSX:BNS)’s forecast, analyst Andrew Weisel expressed concerns over the company’s below-average growth prospects and regulatory challenges in Connecticut, leading to a price target reduction to $55. In a contrasting move, Mizuho (NYSE:MFG) Securities raised its price target for Eversource Energy to $68, maintaining an Outperform rating, citing confidence in the company’s regulatory stability and alignment with market multiples. Meanwhile, JPMorgan downgraded Eversource Energy’s stock rating to Underweight, adjusting the price target to $58 due to concerns over offshore wind project costs and regulatory hurdles. Additionally, Eversource Energy was added to the S&P 500 Dividend Aristocrats index, recognized for its consistent dividend growth, offering a dividend yield of 4.96%. This development places Eversource alongside other companies known for their long-term dividend increases. The company’s financial strategies and regulatory environment continue to be focal points for analysts and investors alike.
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