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On Tuesday, Jefferies analyst firm adjusted the price target for Public Service Enterprise Group Inc. (NYSE:PEG), a leading energy company with a market capitalization of $39.18 billion, to $80.00, a decrease from the previous target of $83.00. Despite this change, the firm maintained its Hold rating on the stock. According to InvestingPro data, the stock’s RSI suggests it may be in oversold territory.
Public Service Enterprise Group Inc. has seen its shares decline by 6.24% year-to-date (YTD), showing relatively low volatility with a beta of 0.62. The analyst noted that the stock has effectively returned all gains from the prior data center rally. The growing attention on utility rates, the concept of additionality, and the ’bring your own power’ initiatives in New Jersey were cited as reasons for a cautious outlook. InvestingPro subscribers have access to additional insights and metrics that could help evaluate these market dynamics.
The analyst also mentioned that the stock still appears to be trading with some value attributed to its nuclear data center operations. Although the risk/reward balance for Public Service Enterprise Group Inc. has improved following the recent pullback in share price, the analyst suggests that the shares are not considered a bargain at this stage.
Public Service Enterprise Group Inc., headquartered in New Jersey, is involved in the generation and distribution of energy. The company has maintained dividend payments for an impressive 55 consecutive years, with a current dividend yield of 3.21%. The company’s performance is closely watched by investors and analysts, especially in the context of regulatory changes and market trends in the utilities sector. For deeper insights into PEG’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.
The price target adjustment by Jefferies reflects the firm’s assessment of the company’s current valuation and potential headwinds in the market. As an influential factor in investor decisions, such changes in analyst ratings and price targets can impact the trading activity of the affected stock.
In other recent news, Public Service Enterprise Group Inc. (PSEG) reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.84, slightly above the forecast of $0.83. The company also reported revenues of $2.46 billion, exceeding the anticipated $2.19 billion. PSEG completed a significant financial transaction by successfully executing a $1 billion public offering of senior notes. This offering included $600 million of 4.900% Senior Notes due 2030 and $400 million of 5.400% Senior Notes due 2035. The transaction was facilitated by major financial institutions including Barclays (LON:BARC) Capital Inc., Citigroup (NYSE:C) Global Markets Inc., Goldman Sachs & Co. LLC, and RBC Capital Markets, LLC.
Additionally, PSEG’s 2025 earnings guidance suggests a potential 9% increase, with plans for a substantial $4 billion investment in 2025. The company also announced a $0.12 per share increase in its annual common dividend, raising it to an indicative annual rate of $2.52 per share for 2025. Despite these positive developments, PSEG’s stock experienced a decline in pre-market trading, which may reflect broader market trends or investor concerns over future challenges. Looking ahead, PSEG plans to invest $22.5 billion to $26 billion over the next five years, focusing on regulated investments to meet growing customer demand and modernize infrastructure.
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