NiSource: Supportive Regulatory Outcomes and Data Center Strategy Underpin Buy Rating

James Thalacker, an analyst from BMO Capital, maintained the Buy rating on Nisource. The associated price target remains the same with $49.00.

James Thalacker has given his Buy rating due to a combination of factors that highlight NiSource’s attractive growth and regulatory profile. He views the recent intervenor testimony in the NIPSCO special contract case—particularly the OUCC’s largely supportive stance and limited objections—as a constructive step toward regulatory approval of the Amazon-related arrangement. The OUCC’s focus on ring‑fencing costs tied to the Amazon contract into a separate business segment and shielding existing customers from those expenses reinforces the stability and fairness of the regulatory outcome, which is favorable for investors.

At the same time, Thalacker underscores that NiSource stands out among its peers through its above‑average earnings and rate base growth, supported by generally constructive regulatory regimes and a track record of successfully resolving rate cases. He also highlights the strategic value of NiSource’s GenCo structure, which enhances the company’s ability to capture data center opportunities like the Amazon deal, potentially accelerating long‑term growth. Taken together, supportive regulatory developments, differentiated growth prospects, and structural advantages in pursuing large customer projects form the basis for his Buy recommendation and updated target price.

In another report released today, Barclays also maintained a Buy rating on the stock with a $45.00 price target.

NI’s price has also changed slightly for the past six months – from $41.270 to $44.330, which is a 7.41% increase.