NiSource stock price target raised to $46 by Evercore ISI

Investing.com - Evercore ISI raised its price target on NiSource (NYSE:NI) to $46.00 from $45.00 while maintaining an "In Line" rating on the stock. The utility company, currently valued at $20.6 billion, is trading near its 52-week high of $44.52, with a P/E ratio of 22.7.

The research firm expects NiSource’s third-quarter results to be a "steady print" with the main catalyst being a clearer framing of the company’s generation business (GenCo) with concrete milestones.

Evercore ISI anticipates an in-line earnings per share result and reaffirmation of the company’s fiscal year 2025 guidance, with the earnings call likely to focus on the multi-year EPS outlook, 2026 guidance, capital plan extension, and the GenCo pathway.

The firm expects NiSource management to emphasize that GenCo growth is incremental to the base utility plan and separated from legacy LDC/NIPSCO operations, which would limit cross-jurisdiction affordability concerns and maintain regulatory support across Columbia and NIPSCO.

Evercore ISI noted that if the call pairs the "separate and additive framing with credible timing/milestones," NiSource’s multiple could drift toward the 90th+ percentile near term, supporting a Tactical Outperform rating into the event.

In other recent news, NiSource has received approval from the Indiana Utility Regulatory Commission for its NIPSCO Generation LLC to serve the growing data center industry in Northern Indiana. This structure aims to separate costs for new data center customers from existing retail customers, allowing NiSource to explore growth opportunities while safeguarding current customers from additional costs. Additionally, NiSource’s subsidiary, NIPSCO, has entered into a contract with a large investment-grade data center customer, which includes a capacity commitment starting in 2027 and increasing annually through 2032. This contract, which will be submitted for regulatory approval, features a mechanism to return savings to retail customers.

In analyst updates, BMO Capital has raised its price target for NiSource to $47.00, maintaining an Outperform rating, following management meetings. Meanwhile, UBS reiterated its Buy rating and $45.00 price target, driven by the recent data center contract. However, Jefferies downgraded NiSource from Buy to Hold, reducing its price target to $44.00 due to regulatory uncertainties in Indiana. These developments reflect the evolving landscape for NiSource as it navigates growth opportunities and regulatory challenges.

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