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Tuesday, New Jersey Resources (NYSE:NJR), a utility company with a market capitalization of $4.92 billion and a conservative beta of 0.59, received a new coverage from Jefferies with a Hold rating and a set price target of $51.00. The initiation of coverage follows Jefferies’ analysis of the company’s long-term earnings trajectory and capital expenditure in commercial solar. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, with additional insights available through their comprehensive Pro Research Report.
The firm’s assessment of New Jersey Resources’ financial prospects estimates a net financial earnings per share (EPS) compound annual growth rate (CAGR) of approximately 8%, which aligns with the company’s guidance but falls short of previous consensus estimates. Trading at a P/E ratio of 13.77x and maintaining a 3.67% dividend yield, the company has demonstrated strong dividend reliability with 29 consecutive years of increases. Jefferies’ analyst pointed out that New Jersey Resources’ fiscal year 2025 guidance for net financial EPS ranges between $3.05 and $3.20, surpassing its target growth range. This increase is attributed to a one-off gain from the sale of a solar asset, with the guidance being recalibrated from a base of $2.83 in FY25.
Investment in commercial solar remains an uncertain factor for New Jersey Resources, yet Jefferies perceives the company’s long-term trajectory to be solid, anchored by core Local Distribution Company (LDC) earnings. The analyst’s forecast suggests that the company’s shares are currently trading at a fair value when compared to its industry peers.
New Jersey Resources, a provider of natural gas and clean energy services, including transportation, distribution, asset management, and home services, is navigating the energy sector with an eye on both traditional and renewable sources. The company’s performance and strategic decisions, including those related to solar investments, are closely watched by investors seeking stable growth and profitability in the utilities sector.
In other recent news, New Jersey Resources reported financial results that exceeded both Guggenheim and consensus estimates, primarily due to the sale of its residential solar business, Sunlight Advantage. Despite the boost from this sale, Guggenheim analysts noted that excluding the one-time gain, the company’s earnings per share (EPS) would be approximately $0.90, below their initial expectation. The company reaffirmed its guidance for net financial earnings per share for 2025, projecting between $3.05 and $3.20, including the asset sale gain. Guggenheim adjusted their full-year 2025 EPS estimate downward by $0.11 but raised the stock price target to $54, reflecting positive projections for the Clean Energy Ventures segment. Additionally, New Jersey Resources held its Annual Meeting, where shareholders re-elected three directors to the board for another three-year term. The meeting also saw the approval of executive compensation and the ratification of Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending September 30, 2025. A strong shareholder turnout ensured a quorum for these proceedings. These developments indicate ongoing strategic adjustments and governance activities within the company.
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