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Investing.com - BofA Securities raised its price target on Eversource Energy (NYSE:ES) to $67.00 from $62.00 on Monday, while maintaining a Neutral rating on the stock. The utility company, currently trading at $65.41, has demonstrated strong momentum with a 15.1% return over the past six months, according to InvestingPro data.
The firm’s updated valuation reflects a sum-of-the-parts approach, applying 2027 average peer price-to-earnings ratios of 15.9x for electric operations and 15.6x for natural gas businesses, with both multiples increased by 5% to account for sector earnings growth.
BofA Securities applies a 25% discount to Connecticut electric and gas utilities to reflect historical regulatory challenges and prospective earnings risks, while other utilities are also valued at a 25% discount due to below-average consolidated growth, weaker balance sheet metrics, and ongoing offshore wind risks.
The firm values parent net loss per share evenly with the electric utility average and applies an additional 5% discount to the entire enterprise due to regulatory uncertainty related to the announced Aquarion sale.
Despite the price target increase, BofA Securities maintained its Neutral stance on Eversource Energy stock, balancing the company’s valuation against the identified regulatory and operational challenges. For deeper insights into Eversource’s financial health and additional analysis, including 8 key ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Eversource Energy reported its financial results for the first quarter of 2025, showing a mixed performance. The company posted an earnings per share (EPS) of $1.50, slightly below the forecast of $1.51, but revenue significantly exceeded expectations, reaching $4.12 billion compared to the anticipated $3.57 billion. Despite the slight miss on EPS, Eversource reaffirmed its full-year 2025 EPS guidance range of $4.67 to $4.82. The company continues to project a compound annual growth rate in EPS of 5 to 7 percent through 2029. Analyst firm BofA Securities updated its outlook on Eversource, increasing the stock price target to $62 while maintaining a Neutral rating. This adjustment comes after Eversource’s reported earnings fell short of both consensus and the firm’s expectations. Eversource’s strategic investments in infrastructure and ongoing regulatory proceedings were highlighted, with the company emphasizing its focus on maintaining financial strength and customer affordability.
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