Public Service Enterprise (PEG – Research Report), the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst James Thalacker from BMO Capital maintained a Hold rating on the stock and has a $85.00 price target.
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James Thalacker has given his Hold rating due to a combination of factors affecting Public Service Enterprise’s stock. While the company’s long-term earnings growth outlook of 5-7% is favorable, there is ongoing investor debate about its 2025 guidance. Although updates are expected to support the current growth outlook, the future performance is anticipated to be influenced by the prospects for long-term contracts at the company’s nuclear assets.
Despite the company’s plans for increased capital spending and anticipated rate base growth, the valuation of the shares remains a concern. The stock has been underperforming compared to its utility peers and is trading at a premium. Consequently, James Thalacker maintains a market performance rating as the relative valuation compared to its growth rate does not justify a more optimistic rating at this time.
According to TipRanks, Thalacker is a 5-star analyst with an average return of 14.3% and a 64.63% success rate. Thalacker covers the Utilities sector, focusing on stocks such as Ameren, American Electric Power, and PPL.
In another report released on February 4, Jefferies also maintained a Hold rating on the stock with a $83.00 price target.