NiSource Set For Outperformance But CenterPoint Energy Faces Regulatory Hurdles, Says BofA Analyst
BofA Securities analyst Ross Fowler reinstated the Buy rating at NiSource Inc (NYSE:NI) with a price target of $37 and the Neutral rating at CenterPoint Energy, Inc (NYSE:CNP) with a price target of $29.
NI: The analyst writes that NiSource has demonstrated strong regulatory and financial execution over the past 24 months and is gaining a reputation for consistency and financial prudence.
The new senior management team has proven effective, delivering results at the high end of expectations in various conditions, adds the analyst.
Also Read: Pete Buttigieg: ‘Hurricane Beryl Is Proving To Be A Highly Destructive Storm’
Fowler expects capital upside from data centers, anticipated updates, and multiple expansions from ongoing rate case resolutions, along with a robust balance sheet to drive continued outperformance.
The analyst forecasts EPS of $1.72, $1.85, and $2.01 for FY24, FY25, and FY26 vs. consensus of $1.73, $1.85, and $1.98, respectively.
CNP: The analyst says that CenterPoint is navigating political and regulatory challenges following its response to Hurricane Beryl.
Read: Hurricane Beryl Expected To Weaken To Tropical Storm As It Hits Texas
While the direct financial impact is likely manageable due to Texas storm recovery mechanisms, ongoing investigations and a pending general rate case suggest near-term multiple recovery unlikely, adds the analyst.
Fowler projects EPS of $1.64, $1.74, and $1.85 for FY24, FY25, and FY26, compared to consensus of $1.62, $1.73, and $1.86, respectively.
Read Next:
Latest Ratings for NI
Date | Firm | Action | From | To |
---|---|---|---|---|
Feb 2022 | UBS | Downgrades | Buy | Neutral |
Jan 2022 | Evercore ISI Group | Upgrades | In-Line | Outperform |
Oct 2021 | Goldman Sachs | Upgrades | Neutral | Buy |
View More Analyst Ratings for NI
View the Latest Analyst Ratings
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article NiSource Set For Outperformance But CenterPoint Energy Faces Regulatory Hurdles, Says BofA Analyst originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.