On Thursday, BMO Capital Markets maintained its optimistic stance on shares of NiSource Inc. (NYSE:NI), raising the utility company's stock price target to $38.00 from $37.00. The adjustment follows NiSource's third-quarter adjusted earnings per share (EPS) of $0.20, which surpassed both BMO Capital's and the consensus estimates, which were $0.19 and $0.16, respectively.
NiSource, which is involved in energy delivery, reaffirmed its full-year earnings guidance, projecting $1.70 to $1.74 per share. Moreover, the company has provided an initial forecast for the year 2025, estimating EPS in the range of $1.84 to $1.88, with a midpoint of $1.86. This projection indicates a year-over-year growth of over 8% at the midpoint and is higher than the previous estimates of $1.85 shared by both BMO Capital and the consensus.
The company's management has also updated its five-year base capital plan, extending it to the period from 2025 to 2029. This revision represents an approximately 18% increase, or an additional $2.9 billion, bringing the total to $19.3 billion. Moreover, there is a potential for $1.8 billion in upside opportunities beyond the base plan.
The BMO Capital analyst has reiterated an Outperform rating on NiSource, expressing confidence in the stock's performance. The revised sum-of-the-parts/marked-to-market (SOTP/MTM) target price of $38 reflects the analyst's increased outlook for the company's performance in 2026.
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