NiSource stock price target raised to $48 by Jefferies on data center potential

Published 24/07/2025, 11:44
NiSource stock price target raised to $48 by Jefferies on data center potential

Investing.com - Jefferies raised its price target on NiSource (NYSE:NI) to $48.00 from $45.00 on Thursday, while maintaining a Buy rating on the utility company’s stock. The stock, currently trading at $41.69, sits near its 52-week high of $42.23, having delivered a robust 38.6% return over the past year. According to InvestingPro, analysts maintain a strong buy consensus with price targets ranging from $36 to $48.15.

The research firm cited potential data center announcements that could materialize through the second half of 2025, though it doesn’t expect any near-term announcements ahead of second-quarter results.

Jefferies views the amended GenCo settlement as constructive, with a final order expected by the end of September 2025.

The firm has increased its upside capital expenditure projection to approximately $6.2 billion from $5.6 billion for the 2025-2029 period, spanning near-term upside opportunities and IRP capital expenditure.

Jefferies models a 9.5% earnings per share compound annual growth rate for 2025-2029, which exceeds the top end of NiSource’s 6-8% EPS growth guidance, suggesting multiple additional growth levers remain available.

In other recent news, NiSource Inc. reported its first-quarter 2025 earnings, which exceeded analyst expectations with an adjusted earnings per share (EPS) of $0.98, surpassing the forecasted $0.90. However, the company’s revenue fell short, reaching $2.03 billion compared to the anticipated $2.21 billion. Despite the revenue shortfall, the company reaffirmed its earnings guidance for the year, supported by strategic initiatives in renewable energy. Additionally, NiSource announced a quarterly dividend of $0.28 per share, payable on August 20, 2025, to shareholders of record as of July 31, 2025. In a recent development, shareholders approved all nominated directors to the board and endorsed executive pay during the annual meeting. Jefferies analyst Julien Dumoulin-Smith maintained a Buy rating for NiSource, adjusting the price target to $45 from $46, citing potential valuation growth and higher risk-adjusted returns. The analyst also noted a forecasted 9.2% compound annual growth rate in EPS from 2025 to 2029, which positions NiSource above the consensus estimates. These developments highlight NiSource’s ongoing efforts to enhance shareholder value and its strategic focus on long-term growth.

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