Nicholas Amicucci, an analyst from Evercore ISI, has initiated a new Hold rating on Public Service Enterprise (PEG).
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Nicholas Amicucci’s rating is based on a combination of factors that influence the current and future prospects of Public Service Enterprise Group (PSE&G). While there are opportunities for growth, particularly in expanding the rate base and participating in the PJM data center build-out, the existing legislative environment poses challenges. The upcoming gubernatorial election in New Jersey could act as a catalyst for change, but the political volatility in the state suggests a cautious approach.
Moreover, the company’s potential to benefit from data center and transmission opportunities could enhance its earnings growth. However, the political landscape in New Jersey creates uncertainty, delaying potential contracts. The valuation approach applied by Amicucci reflects these dynamics, resulting in a target price of $83, which aligns with the current share price, leading to a Hold rating. This conservative stance considers the net neutral position of PSE&G across its jurisdictional growth and regulatory outlook.
According to TipRanks, Amicucci is a 5-star analyst with an average return of 62.0% and a 94.44% success rate. Amicucci covers the Utilities sector, focusing on stocks such as Talen Energy Corp, Centerpoint Energy, and Consolidated Edison.
In another report released on October 3, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $88.00 price target.