CCH Holdings prices IPO at $4 per share on NASDAQ
Investing.com - Jefferies downgraded NiSource (NYSE:NI) from Buy to Hold on Friday, while lowering its price target to $44.00 from $48.00. According to InvestingPro data, the stock currently trades at a P/E ratio of 20.8x and has shown strong resilience with a 22.7% return over the past year.
The downgrade comes amid heightened political and regulatory complexity in Indiana, where two Indiana Utility Regulatory Commission (IURC) commissioners have exited and a new Office of Utility Consumer Counselor (OUCC) head has been appointed with a mandate to reduce rates. Despite these challenges, NiSource maintains a strong dividend track record, having maintained payments for 39 consecutive years.
Jefferies noted that NiSource maintains significant exposure to Indiana, with 66% of its rate base and 56% of its sum-of-the-parts (SOTP) valuation tied to the state—the highest percentage among its peers.
The firm reduced its premium valuation for NiSource’s Northern Indiana Public Service Company (NIPSCO) subsidiary to 10% from 30%, reflecting increased uncertainty in Indiana’s increasingly political regulatory landscape.
Despite the downgrade, Jefferies maintained its base case expectation for a 2025 generation company approval and distribution company announcement for NiSource. The company’s overall financial health is rated as GOOD by InvestingPro, which offers additional insights through its comprehensive Pro Research Report, available along with 8 more key ProTips for this stock.
In other recent news, NiSource Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.22, compared to the forecasted $0.21. The company’s revenue also exceeded projections, reaching $1.16 billion against the anticipated $1.04 billion. Additionally, NiSource declared a quarterly dividend of $0.28 per share, payable on November 20, 2025, to stockholders of record as of October 31, 2025. Regulatory changes in Indiana have raised concerns about potential delays in the company’s application to spin off its subsidiary, Genco. Citigroup analyst Ryan Levine maintained a neutral rating on the stock, while Wolfe Research raised its price target to $46, citing strong growth prospects. CFRA also increased its price target to $45, highlighting NiSource’s attractive growth opportunities. These developments reflect NiSource’s ongoing efforts to maintain growth and shareholder value.
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