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On Tuesday, BofA Securities analyst Ross Fowler updated the firm’s outlook on Eversource Energy (NYSE:ES), increasing the price target to $62 from the previous $61 while keeping a Neutral rating on the shares. According to InvestingPro data, the stock currently trades at $63.53, with analyst targets ranging from $47 to $85. The company’s Financial Health Score stands at "FAIR," with notable strengths in price momentum but challenges in cash flow management. This adjustment reflects a change to a 2027 valuation year, which aligns with the electric and gas peer group multiples of 15.8x and 15.6x, respectively. The previous multiples were based on an estimated 16.7x for the year 2026. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, with an EV/EBITDA ratio of 12.1x and P/E ratio of 27.3x.
The revision of the price target comes after Eversource Energy reported its first-quarter earnings for the year 2025. The company posted an adjusted earnings per share (EPS) of $1.50, a slight increase from $1.49 in the same quarter of the previous year. The company maintains a strong dividend track record, having raised dividends for 26 consecutive years, with a current yield of 4.74% and a 5.24% dividend growth rate over the last twelve months. This rise in earnings was primarily attributed to higher electric and gas rates, which were nearly counterbalanced by increased expenses at the parent level, as well as higher interest and operations and maintenance (O&M) costs. The reported results fell short of the consensus and BofA Securities’ expectations, which were set at $1.51 and $1.53, respectively.
Despite the lower-than-anticipated Q1 results, Eversource Energy has maintained its full-year 2025 EPS guidance in the range of $4.67 to $4.82. Additionally, the company continues to project a 5 to 7 percent compound annual growth rate (CAGR) in EPS through the year 2029. InvestingPro subscribers have access to additional insights, including 6 more ProTips and comprehensive analysis of the company’s financial health and growth prospects through the Pro Research Report.
In light of the updated share count, BofA Securities has also adjusted its EPS estimates for Eversource Energy for the fiscal years 2025 through 2027. The new projections stand at $4.72, $4.99, and $5.34 for each respective year, slightly modified from the previous estimates of $4.75, $5.01, and $5.34.
The revised price target and maintained Neutral rating by BofA Securities suggest a conservative outlook on Eversource Energy’s stock, considering the company’s performance and future earnings potential as assessed by the firm’s analysis. InvestingPro data shows the company operates with significant debt burden, with total debt of $29.4 billion and a debt-to-equity ratio of 1.92, though it maintains profitable operations with a gross profit margin of 53.67%.
In other recent news, Eversource Energy reported its financial results for the first quarter of 2025, revealing a mixed performance with a slight miss on earnings per share (EPS) but a significant revenue beat. The company posted an EPS of $1.50, just below the $1.51 forecast, while revenue surged to $4.12 billion, exceeding expectations of $3.57 billion. Eversource reaffirmed its 2025 EPS guidance range, projecting between $4.67 and $4.82. The company remains focused on infrastructure investments, including a $24.2 billion capital plan over five years. Eversource’s ongoing regulatory proceedings in key states may affect future operations, but the company continues to work on improving its balance sheet and cash flow. Additionally, the company has made progress on the divestment of Aquarion Water, which is anticipated to close by the end of the year. Eversource also highlighted its strategic investments in transmission and distribution, which contributed positively to earnings.
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