S&P 500 falls as traders turn sour on tech
Investing.com - Jefferies upgraded Public Service Enterprise Group Inc. (NYSE:PEG) from Hold to Buy on Thursday, while slightly raising its price target to $90.00 from $89.00. PEG currently trades at $79.86, with InvestingPro analysis suggesting the stock is slightly overvalued based on its Fair Value assessment.
The upgrade comes after PEG has been the worst-performing non-California utility stock year-to-date, according to Jefferies’ analysis. This aligns with InvestingPro data showing PEG’s YTD return of -3.21% and 1-year return of -1.75%.
The firm believes investor concerns about potential rate freezes and regulatory headwinds have overlooked probable alignment on storage and energy efficiency investments.
Jefferies notes that management is "politically adept" and possesses tools to deliver customer savings while increasing investment with core labor alignment.
The research firm also highlights that merchant power prices are "too large to miss," with power implied at 6.4x FY27E merchant EV/EBITDA, and sees 8-12% earnings per share upside potential compared to consensus estimates. PEG currently trades at a P/E ratio of 19.24 and EV/EBITDA of 14.22, with revenue growth of 12.35% in the last twelve months.
In other recent news, Public Service Enterprise Group Inc. (PSEG) reported its third-quarter 2025 earnings, which exceeded expectations. The company announced an earnings per share (EPS) of $1.13, surpassing both BMO Capital’s estimate of $1.01 and the consensus estimate of $1.02. Revenue also outperformed projections, coming in at $3.22 billion compared to the anticipated $2.73 billion. Despite the strong earnings performance, BMO Capital lowered its price target for PSEG to $83.00 from $85.00, while maintaining a Market Perform rating. These developments highlight PSEG’s ability to exceed financial forecasts, although analyst sentiment remains cautious. The earnings results and subsequent analyst actions are crucial for investors monitoring the company’s financial health.
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