Hawaiian Electric’s Hold Rating Amid Regulatory Uncertainty and Financial Ambiguity

Analyst Jonathan Reeder of Wells Fargo reiterated a Hold rating on Hawaiian Electric (HE – Research Report), retaining the price target of $12.50.

Jonathan Reeder has given his Hold rating due to a combination of factors surrounding Hawaiian Electric’s current financial and regulatory situation. While there is progress in the company’s strategic path, the lack of clarity from the Hawaiian legislature on wildfire liability caps and potential fund creation remains a concern. This uncertainty has shifted the responsibility to the Public Utilities Commission (PUC), which must now determine the extent of financial protections available to Hawaiian Electric.
Despite some positive legislative developments, such as bills awaiting the governor’s signature that could support Hawaiian Electric’s financial stability, the ultimate impact of these measures is still uncertain. The PUC’s broad discretion in setting liability caps and the potential creation of a wildfire fund, which would not be in place until the second half of 2026 at the earliest, adds to the ambiguity. Additionally, the company’s ability to raise capital and fund its capital expenditure program hinges on finalizing the wildfire settlement and receiving supportive regulatory decisions. These factors contribute to a cautious outlook, justifying the Hold rating.

According to TipRanks, Reeder is a 4-star analyst with an average return of 4.1% and a 53.33% success rate. Reeder covers the Utilities sector, focusing on stocks such as American Water, American States Water, and California Water Service.