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Investing.com - Everecore ISI has removed NiSource (NYSE:NI) from its Tactical Outperform list following the company’s strong third-quarter results and long-term guidance, while maintaining an "In Line" core rating. This move aligns with InvestingPro data showing NI currently trading above its Fair Value, with a P/E ratio of 22.2 despite the utility’s impressive 25.6% price return over the past year.
The research firm indicated that after NiSource’s earnings report and framework reset, the near-term positives are largely reflected in the stock price, and the risk/reward profile now reverts to their base view. NiSource management reaffirmed its fiscal year 2025 guidance toward the upper half of $1.85-$1.89 per share and introduced fiscal year 2026 guidance of $2.02-$2.07. Analysts tracked by InvestingPro remain cautiously optimistic with price targets ranging from $36 to $49, suggesting potential upside of approximately 10%.
NiSource has expanded its 2026-2030 capital plan to $28 billion, with approximately $21 billion allocated for core utilities and about $7 billion for data center-related investments. This capital plan supports a 9-11% consolidated rate-base compound annual growth rate, which Everecore ISI described as "important but now well-telegraphed milestones." The utility, with a market capitalization of $20.1 billion, has demonstrated strong revenue growth of 19.6% over the last twelve months, according to InvestingPro data.
The company’s generation company (GenCo) has signed 3.0 GW with a special-contract filing expected by year-end 2025 and approval anticipated in the first half of 2026. Accretion is framed at approximately $0.01-$0.02 in 2026, rising to $0.10-$0.15 by 2030 and $0.25-$0.45 by 2033, which Everecore views as medium-term rather than immediate catalysts. This gradual growth approach is characteristic of NiSource, which has maintained dividend payments for 39 consecutive years and currently offers a 2.7% dividend yield.
NiSource’s capital investment plan will be supported by $300-$500 million of annual equity raised via at-the-market offerings from 2026-2030 to maintain FFO/Debt at 14-16% annually, which aligns with Everecore’s base case expectations. InvestingPro data indicates the company’s current ratio stands at 0.52, confirming short-term obligations exceed liquid assets. For investors seeking deeper insights into NiSource’s financial health and growth prospects, InvestingPro offers comprehensive Pro Research Reports with expert analysis on this and 1,400+ other top stocks.
In other recent news, NiSource reported its third-quarter 2025 earnings, revealing a slight miss in earnings per share but a notable revenue beat. The adjusted EPS was $0.19, just below the forecast of $0.20, while revenue reached $1.14 billion, surpassing the expected $1.04 billion. Jefferies upgraded NiSource’s stock from Hold to Buy, citing a positive growth outlook and raised the price target to $50.00 from $46.00. The upgrade is based on the company’s projected earnings growth rate and the absence of immediate regulatory risk in Indiana. Additionally, NiSource has established a $1.5 billion at-the-market equity offering program, set to continue through December 31, 2028. The company has entered into agreements with 11 financial institutions, including Barclays and Goldman Sachs, to act as sales agents. These developments indicate a proactive approach by NiSource to strengthen its financial position and capitalize on growth opportunities.
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