Eversource Energy: Hold Rating Amid Stability and Uncertainties in Financial Outlook and Regulatory Challenges

Analyst James Thalacker from BMO Capital reiterated a Hold rating on Eversource Energy (ES – Research Report) and keeping the price target at $72.00.

James Thalacker has given his Hold rating due to a combination of factors related to Eversource Energy’s recent performance and future outlook. The company reported first-quarter earnings per share that were slightly below consensus estimates, but management reaffirmed its guidance for the year, indicating stability in its financial projections. The company’s capital plan is expected to drive significant rate base growth, yet there were no updates on cost or schedule for major projects like Revolution Wind, which could imply potential risks.
Furthermore, while Eversource Energy has made strides in diversifying its supply chain post-COVID, there remains a manageable exposure to potential tariff impacts. The company’s balance sheet shows areas for improvement, with financial metrics close to downgrade thresholds. Although management anticipates improvements by the end of 2025, the current financial position and regulatory challenges, particularly in Connecticut, contribute to a cautious outlook. These factors collectively support the decision to maintain a Hold rating, reflecting a balanced view of potential growth against existing uncertainties.

In another report released on May 2, Evercore ISI also reiterated a Hold rating on the stock with a $63.00 price target.