Eversource Energy (ES – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Ryan Levine from Citi remains neutral on the stock and has a $58.00 price target.
Ryan Levine has given his Hold rating due to a combination of factors affecting Eversource Energy’s financial outlook. The rating considers the unexpected additional $1.5 billion writedown on its offshore wind investment, which brings the carrying value significantly lower than previously anticipated. Although the stock is nearing a point where the risk associated with this investment is largely accounted for, with approximately $0.7 billion of value remaining, Levine remains cautious given that the risks have not been fully mitigated.
Furthermore, Levine’s assessment reflects concerns over new writedowns due to increased vessel and supply chain costs, which were not anticipated by investors, as well as issues concerning the Sunrise project. The potential sale of a 50% interest in three offshore wind projects to a global private infrastructure investor is noted, but the deal is not yet finalized, adding to the uncertainty. Levine also highlights the absence of reaffirmed guidance from Eversource Energy, with investors keenly awaiting the company’s future financing plans and earnings projections to be discussed in an upcoming earnings call. The projected share price return of -7.7% reinforces the Hold rating, signaling caution amidst these developments.
Levine covers the Utilities sector, focusing on stocks such as Eversource Energy, PG&E, and Centerpoint Energy. According to TipRanks, Levine has an average return of 7.1% and a 67.24% success rate on recommended stocks.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Eversource Energy (ES) Company Description:
Massachusetts-based Eversource Energy is an electric services company. The company is engaged in the transmission and distribution of electricity, as well as the distribution of natural gas. It also operates regulated water utilities. It operates in four segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution.
Read More on ES:
