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Investing.com - Mizuho raised its price target on Eversource Energy (NYSE:ES) to $81.00 from $72.00 on Friday, while maintaining an Outperform rating on the utility company’s stock. The stock, currently trading at $73.89, is near its 52-week high of $74.45 and appears overvalued according to InvestingPro analysis.
The research firm cited several positive developments since summer that have strengthened Eversource’s balance sheet and improved its regulatory environment, including greater clarity on the Revolution Wind project and the sale of the Aquarion water utility business. The company maintains a substantial debt-to-equity ratio of 1.9, though it has demonstrated financial stability through 26 consecutive years of dividend increases, currently yielding 4.15%.
Mizuho also noted the appointment of new commissioners in Connecticut as a favorable factor for the company, which operates in multiple northeastern states.
The firm highlighted that Eversource has focused on improving its balance sheet through increased liquidity and strengthening credit metrics, which collectively provide a path to narrow the company’s P/E discount versus the current approximately 19%.
Mizuho adjusted its earnings per share estimates for Eversource to $4.72 for 2025, $4.95 for 2026, and $5.21 for 2027.
In other recent news, Eversource Energy announced a $285 million increase in its liability for future payments related to the sale of its South Fork Wind and Revolution Wind projects. This adjustment results in a net non-recurring after-tax charge of approximately $75 million, partly offset by a $210 million federal tax benefit from losses on these offshore wind project sales. UBS has reiterated its Buy rating on Eversource Energy, maintaining a $77.00 price target, following a favorable legal development that allows offshore construction of the Revolution Wind project to resume. Jefferies, while maintaining an Underperform rating, raised its price target for Eversource Energy to $60.00, citing improved cash flows and benefits from Connecticut securitization. However, Jefferies expressed concerns about the company’s ongoing Aquarion sale, noting opposition from several municipalities and stakeholders. Mizuho also maintained its rating on Eversource Energy despite the offshore wind charge, indicating confidence in the company’s financial management. These developments reflect ongoing challenges and opportunities for Eversource Energy in its wind energy projects and broader utility operations.
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