Nisource Set for Growth: Strategic Expansion and Strong Financial Performance Drive Buy Rating

Mizuho Securities analyst Gabe Moreen has maintained their bullish stance on NI stock, giving a Buy rating today.

Gabe Moreen has given his Buy rating due to a combination of factors that suggest Nisource is poised for growth. The company’s financial performance for FY24 was in line with expectations, with adjusted earnings per share slightly exceeding the upper end of guidance. Additionally, the 2025 guidance has been raised, reflecting strong regulated returns and minimal regulatory lag, indicating a stable growth outlook.
Furthermore, Nisource is exploring new opportunities in the data center sector, which are expected to offer returns ‘above and beyond’ typical regulated returns. This strategic move is supported by the NIPSCO GenCo initiative, which aims to provide flexibility and speed to hyperscaler customers while managing risk. The company’s capital expenditure plans also show a significant increase, which aligns with anticipated economic development in regions like Virginia and Indiana, positioning Nisource well for future growth.

Moreen covers the Energy sector, focusing on stocks such as Kinder Morgan, Energy Transfer, and Enterprise Products Partners. According to TipRanks, Moreen has an average return of 16.4% and a 78.18% success rate on recommended stocks.

In another report released today, Wells Fargo also reiterated a Buy rating on the stock with a $43.00 price target.