Nisource’s Strong Q1 Performance and Strategic Growth Plan Justify Buy Rating

Wells Fargo analyst Sarah Akers has reiterated their bullish stance on NI stock, giving a Buy rating on April 28.

Sarah Akers’s rating is based on a combination of factors that highlight Nisource’s strong performance and growth potential. The company reported impressive first-quarter results, exceeding expectations with earnings per share of $0.98 compared to the estimated $0.90. This solid financial performance is complemented by Nisource’s strategic growth plan, which targets an 8-10% increase in the rate base and a 6-8% growth in earnings per share, while maintaining a favorable FFO/Debt ratio. These factors, along with supportive regulatory frameworks and management’s effective execution, contribute to a positive outlook for the company.
Furthermore, Nisource is exploring additional opportunities, including potential data center projects, which could further enhance its growth trajectory. The ongoing regulatory and legislative developments, such as the anticipated approval of the IN Genco filing and the Ohio proposal to reduce capital recovery lag, are seen as favorable for the company. Additionally, Nisource’s commitment to cost management and operational efficiency, including leveraging AI for productivity gains, positions it well for future success. These elements collectively justify the Buy rating, as they indicate a robust and promising investment opportunity.

According to TipRanks, Akers is a 5-star analyst with an average return of 9.6% and a 69.87% success rate. Akers covers the Utilities sector, focusing on stocks such as Centerpoint Energy, Portland GE, and Dominion Energy.

In another report released on April 28, BMO Capital also maintained a Buy rating on the stock with a $43.00 price target.