Analyst Ross Fowler of Bank of America Securities reiterated a Hold rating on Eversource Energy (ES – Research Report), boosting the price target to $62.00.
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Ross Fowler has given his Hold rating due to a combination of factors surrounding Eversource Energy’s current financial and operational situation. The company’s Q1’25 earnings were slightly below expectations, with adjusted EPS of $1.50 compared to the anticipated $1.51-$1.53. Although there was an increase in earnings from higher rates in the electric and gas business, this was nearly offset by higher expenses related to interest and operations and maintenance costs.
Additionally, while the Revolution Wind project is nearing completion and liability concerns appear limited, the regulatory environment in Connecticut presents potential challenges. Legislative changes, such as the proposal to increase the number of Commissioners and the passage of Senate Bill 1560, could impact Eversource’s operations and financial health. Furthermore, the company’s efforts to strengthen its balance sheet above downgrade thresholds through equity issuance and asset sales are ongoing. These factors collectively contribute to the Hold rating, as they present both opportunities and risks for the company moving forward.
Fowler covers the Utilities sector, focusing on stocks such as Consolidated Edison, Northwestern, and Public Service Enterprise. According to TipRanks, Fowler has an average return of 3.4% and a 56.99% success rate on recommended stocks.
In another report released on May 4, BMO Capital also reiterated a Hold rating on the stock with a $72.00 price target.