Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - CFRA raised its price target on NiSource (NYSE:NI) to $45.00 from $39.00 on Monday, while maintaining a Hold rating on the utility company’s stock. The company, currently trading near its 52-week high of $43.51, has demonstrated strong market performance with a 39% return over the past year. According to InvestingPro analysis, NiSource maintains a "GOOD" overall financial health score.
The research firm cited NiSource’s attractive growth opportunities as a key factor in the price target increase, pointing to the company’s 8%-10% rate base growth target from 2025 to 2029.
CFRA’s new price target represents a multiple of 22.3 times its 2026 earnings per share estimate of $2.02, which is above NiSource’s five-year forward average of 17.6x and reflects a small premium to comparable multi-utilities peers.
The firm noted that low tariff risk and minimal disruption from the One Big Beautiful Bill Act legislation support its view on the company, while potential data center demand in NiSource’s service territories could provide upside to long-term growth.
Despite the higher price target, CFRA maintained its Hold rating, stating that NiSource’s premium valuation limits near-term upside potential for the shares, which currently yield 2.8% based on next-12-month projected dividends.
In other recent news, NiSource Inc. reported its second-quarter 2025 earnings, exceeding analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $0.22, surpassing the projected $0.21. Additionally, NiSource’s revenue reached $1.16 billion, which was higher than the anticipated $1.04 billion. These results highlight the company’s strong financial performance during the quarter. Despite these positive earnings and revenue figures, the stock experienced a slight decline in pre-market trading. Investors might be interested in these developments as they reflect the company’s ability to outperform market forecasts. Such financial achievements are crucial for stakeholders assessing the company’s current standing.
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