J.P. Morgan analyst Jeremy Tonet has maintained their neutral stance on ES stock, giving a Hold rating on April 23.
Jeremy Tonet has given his Hold rating due to a combination of factors, including the ongoing divestiture of Eversource Energy’s water asset, Aquarion, and the company’s financial framework. Despite Aquarion’s attractive qualities and scarcity, the sale has been complex due to legal challenges in Connecticut and Eversource’s deliberate approach to achieving the right price and buyer commitment for regulatory approval. Additionally, the company’s financial strategy is highlighted by the detailed drivers of its funds from operations (FFO) to debt ratio, which is projected to significantly improve by 2025 compared to the current S&P estimate for 2023.
Eversource’s recent earnings report for the first quarter of 2024 matched analyst expectations, with a slight year-over-year increase, indicating steady operational performance. Moreover, the firm has reaffirmed its adjusted earnings per share (EPS) guidance and capital expenditure plan for the upcoming years, suggesting a stable outlook. The company’s regulatory calendar, including key reviews in multiple states, could potentially impact financials, but for now, the Hold rating reflects a cautious but not pessimistic view of the company’s near-term prospects and challenges.
Tonet covers the Energy sector, focusing on stocks such as Targa Resources, Oneok, and TC Energy. According to TipRanks, Tonet has an average return of 4.9% and a 55.26% success rate on recommended stocks.
In another report released on April 23, Barclays also maintained a Hold rating on the stock with a $65.00 price target.
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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.
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