Nisource stock reaches all-time high at 43.51 USD

Published 01/10/2025, 14:44
Nisource stock reaches all-time high at 43.51 USD

NiSource Inc. stock has reached a significant milestone, hitting an all-time high of 43.51 USD. This achievement underscores a robust performance over the past year, with the company delivering a total return of 27.95% and maintaining strong momentum with a year-to-date gain of 20.32%. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with a P/E ratio of 22.75x. The utility company, which provides natural gas and electric services, has demonstrated resilience and growth in a competitive market, contributing to this upward trajectory. With a market capitalization of $20.4 billion and an impressive track record of maintaining dividend payments for 39 consecutive years, NiSource has earned an overall "GOOD" financial health rating. Investors have shown increased confidence in NiSource’s strategic direction and operational efficiency, supported by revenue growth of 17% over the last twelve months and a stable beta of 0.6, factors that have likely contributed to this record-setting stock price.

In other recent news, NiSource announced that the Indiana Utility Regulatory Commission (IURC) has approved its petition for a new generation unit aimed at serving the data center industry in Northern Indiana. This move is designed to separate the costs associated with 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, Northern Indiana Public Service Company LLC (NIPSCO), has entered into a contract with a major investment-grade company to supply power to its data centers. This agreement, which will begin in 2027 and expand through 2032, is awaiting IURC approval and includes a mechanism for returning savings to customers.

BMO Capital has raised its price target for NiSource to $47.00, maintaining an Outperform rating, following discussions with company executives. Meanwhile, UBS reiterated its Buy rating and a $45.00 price target after NiSource disclosed its new data center contract. However, Jefferies downgraded NiSource from Buy to Hold, reducing its price target to $44.00 due to increasing political and regulatory complexities in Indiana. These developments underscore the dynamic environment in which NiSource is currently operating.

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