Nisource, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Gabe Moreen from Mizuho Securities maintained a Buy rating on the stock and has a $50.00 price target.
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Gabe Moreen has given his Buy rating due to a combination of factors that highlight NiSource’s strategic positioning and growth potential. The recent announcement of a $15 billion Amazon data center campus as an anchor customer for NIPSCO GenCo underscores NiSource’s leverage in the hyperscaler and power generation sectors. This development is expected to contribute significantly to NiSource’s earnings, with projections of an incremental EPS contribution as the project reaches its full capacity. The potential for additional deals and the operational credibility gained from the Amazon announcement further bolster NiSource’s growth prospects.
Moreover, the contract with Amazon is structured to minimize risk and ensure full investment recovery, with anticipated regulatory approval enhancing its attractiveness. NiSource’s base business remains robust, with a consolidated EPS CAGR of 8-9% and increased capital opportunities. The company’s solid balance sheet and strategic investments are expected to drive continued growth, justifying the raised price target to $50. These factors collectively support the Buy rating, reflecting confidence in NiSource’s ability to capitalize on its strategic initiatives and deliver shareholder value.
Moreen covers the Energy sector, focusing on stocks such as Kinder Morgan, Williams Co, and Kinetik. According to TipRanks, Moreen has an average return of 12.8% and a 75.32% success rate on recommended stocks.