Eversource Energy: Discounted Valuation Offset by Regulatory and Execution Uncertainties Supporting a Neutral Hold Rating

UBS analyst William Appicelli maintained a Hold rating on Eversource Energy yesterday and set a price target of $73.00.

William Appicelli has given his Hold rating due to a combination of factors related to Eversource Energy’s regulatory and project‑execution risk profile. He notes that the outcome and timing of the Connecticut storm cost securitization proceeding are uncertain, particularly because key state entities oppose the company’s proposed recovery schedule for roughly $1.5 billion in storm-related costs and carrying charges. This proceeding, together with a busy 2026 regulatory agenda that includes an expected CL&P electric rate case and a possible Aquarion rate case, creates a crowded and potentially volatile regulatory environment. In addition, the recent 90‑day suspension of offshore wind construction, including the Revolution Wind project for which Eversource bears cost overrun and delay risk, adds another layer of execution uncertainty.

At the same time, Appicelli acknowledges that the stock trades at a roughly 20% price-to-earnings discount relative to his 2028 earnings estimate, which offers some valuation appeal. Nonetheless, he judges that the combination of unresolved storm cost recovery, ongoing legal and regulatory processes surrounding the attempted Aquarion sale, and the construction pause at Revolution Wind limits near‑term upside visibility. Balancing these risks against the discounted valuation, he maintains a $73 price target and views the risk/reward as relatively even, leading him to a Neutral (Hold) stance rather than a more decisive Buy or Sell recommendation.