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On Wednesday, Mizuho (NYSE:MFG) Securities updated its financial outlook for New Jersey Resources (NYSE:NJR), a company known for its regulated natural gas services and boasting a market capitalization of nearly $5 billion. Analyst Gabriel Moreen raised the price target to $52 from the previous $50 while maintaining a Neutral rating on the stock. Moreen reflected on the company’s first-quarter earnings for fiscal year 2025, which were deemed slightly underwhelming, but not enough to alter the firm’s expectation that New Jersey Resources will likely meet or even surpass its financial guidance for the year. According to InvestingPro data, NJR has demonstrated strong financial stability with a 6.51% revenue growth over the last twelve months and maintains an impressive track record of 29 consecutive years of dividend increases.
The revision in the price target comes in anticipation of a potential boost to the company’s fiscal year 2025 forecast, following volatile natural gas prices seen in January. Moreen noted that management had described the winter weather as "constructive," suggesting a positive impact on the upcoming second-quarter fiscal year 2025 update. The analyst also pointed to the need for more information on the company’s Clean Energy Ventures (CEV) segment, where progress has been limited and capital expenditures are trending toward the lower end of the year’s guidance, based on the first quarter’s approximate $34 million capex. With analyst targets ranging from $48 to $60 and a current dividend yield of 3.69%, InvestingPro subscribers can access detailed analysis and 12+ additional key metrics to better evaluate NJR’s investment potential.
The company’s core regulated earnings are expected to remain steady, especially after the conclusion of New Jersey Natural Gas’s rate case. While the analyst has slightly adjusted estimates, the reiteration of a Neutral rating indicates no significant change in the investment thesis. Moreen’s commentary also highlighted the market’s increased focus on the CEV segment due to rising concerns over tariff policies and the outlook for the federal Investment Tax Credit ( ITC (NSE:ITC)) program.
In summary, Mizuho’s updated stance on New Jersey Resources reflects a modestly improved outlook with the price target adjustment, while the overall perspective on the stock remains unchanged. Investors and stakeholders of New Jersey Resources can look forward to more detailed insights during the company’s forthcoming fiscal second-quarter update.
In other recent news, New Jersey Resources Corporation announced a quarterly dividend of $0.45 per share, continuing its tradition of consistent shareholder returns. This dividend is payable on July 1, 2025, to shareholders recorded by June 10, 2025. Jefferies initiated coverage on New Jersey Resources with a Hold rating and set a price target of $51, noting the company’s long-term earnings trajectory and capital expenditure in commercial solar. Jefferies estimates a net financial earnings per share compound annual growth rate of approximately 8%, aligning with the company’s guidance. Guggenheim analysts increased the price target for New Jersey Resources to $54, maintaining a Neutral rating, following financial performance that surpassed expectations due to the sale of its residential solar business. The company’s Clean Energy Ventures segment continues to perform strongly. Additionally, New Jersey Resources re-elected three directors to its board during its Annual Meeting and secured shareholder approval for executive compensation and the appointment of Deloitte & Touche LLP as its independent registered public accounting firm. These developments reflect the company’s ongoing efforts to maintain stability and growth in its operations.
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