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On Wednesday, Guggenheim analysts increased the price target for New Jersey Resources (NYSE:NJR) to $54.00, up from the previous $53.00, while maintaining a Neutral rating on the company’s stock. According to InvestingPro data, analyst targets for NJR range from $48 to $60, with the stock currently trading at $46.52. The company maintains a strong "GOOD" Financial Health score, suggesting solid fundamentals despite current market valuation indicating the stock may be trading above its Fair Value. The adjustment follows New Jersey Resources’ financial performance, which surpassed Guggenheim and consensus estimates, largely due to the sale of its residential solar business, Sunlight Advantage.
According to Guggenheim’s analysis, when the one-time gain from the sale is excluded, New Jersey Resources’ earnings per share (EPS) would be approximately $0.90, which is modestly below their initial expectation of $1.01. Even after factoring in the earnings that would have been generated had the company retained the solar asset for roughly three months, the EPS would have been closer to $0.92. InvestingPro data reveals the company has maintained impressive dividend payments for 55 consecutive years, with a current yield of 3.87% and a sustainable P/E ratio of 14.46. Nonetheless, the company’s Clean Energy Ventures (CEV) segment is performing robustly, and the pipeline is protected from possible changes to tax credits under the Inflation Reduction Act (IRA) with the new Trump administration.
The company’s management highlighted a project pipeline exceeding 1 gigawatt and intends to use the proceeds from the solar business sale to strengthen the balance sheet and support future growth without the need for equity. New Jersey Resources reaffirmed its guidance for net financial earnings per share (NFEPS) for 2025, ranging between $3.05 and $3.20, which includes the asset sale gain. During the earnings call, the company indicated it is on track to meet this guidance for the year, although the market’s response to this announcement was subdued today.
As a result of the quarterly performance and the sale of Sunlight Advantage, Guggenheim has revised their full-year 2025 EPS estimate for New Jersey Resources downward by $0.11. The revised price target of $54 reflects Guggenheim’s updated projections for the CEV segment from fiscal years 2026 to 2029, which are now slightly higher due to management’s positive outlook for this segment. For deeper insights into NJR’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US equities with detailed metrics and expert analysis.
In other recent news, New Jersey Resources Corporation has been making significant strides. The company’s shareholders recently re-elected three directors to the board for a three-year term ending in 2028, according to a press release filed with the Securities and Exchange Commission. In addition, Deloitte & Touche LLP was ratified as the company’s independent registered public accounting firm for the fiscal year ending September 30, 2025.
On the financial front, the company reported a robust fiscal year 2024, surpassing the high end of their Net Financial Earnings Per Share (NFEPS) guidance with an NFEPS of $2.95, an increase from $2.70 in the previous year. This achievement marks the fourth year in a row that NJR has outperformed its initial forecasts. Looking ahead, NJR has set its NFEPS growth target at 7-9%.
New Jersey Resources has also been the subject of several analyst notes. Guggenheim increased the price target to $49.00 from the previous $46.00, while maintaining a Neutral rating on the stock. Mizuho (NYSE:MFG) Securities also updated its evaluation of New Jersey Resources, increasing the company’s price target from $47.00 to $50.00, maintaining its neutral stance on the stock.
In strategic developments, New Jersey Resources announced the divestiture of its residential solar portfolio, Sunlight Advantage, for $132.5 million. This sale is aimed at simplifying the Clean Energy Ventures (CEV) business and focusing on the expansion of commercial solar initiatives. The proceeds from the sale are intended to bolster the company’s balance sheet and to reinvest in projects that promise higher returns.
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