Jefferies analyst Julien Dumoulin Smith maintained a Hold rating on Hawaiian Electric today and set a price target of $12.00.
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Julien Dumoulin Smith has given his Hold rating due to a combination of factors impacting Hawaiian Electric’s future performance. The company is making progress towards achieving a 9% core return on equity, which is a positive development. However, there remains uncertainty regarding the finalization of the wildfire liability cap and the design of the recovery fund, which are crucial for the company’s financial stability.
Hawaiian Electric is navigating through a complex regulatory environment, with upcoming court and Public Utilities Commission deadlines that could significantly influence its financial outlook. The company’s management is actively working on restructuring performance-based regulation mechanics and utilizing legislative tools to improve financial metrics. Despite these efforts, the outcome of policy decisions over the next 12 to 18 months remains uncertain, which justifies the Hold rating as the company balances potential risks and opportunities.
According to TipRanks, Dumoulin Smith is a 4-star analyst with an average return of 5.6% and a 56.24% success rate. Dumoulin Smith covers the Utilities sector, focusing on stocks such as American Electric Power, Southern Co, and Essential Utilities.