Morgan Stanley analyst David Arcaro maintained a Buy rating on Public Service Enterprise (PEG – Research Report) today and set a price target of $96.00.
David Arcaro has given his Buy rating due to a combination of factors that suggest a positive growth outlook for Public Service Enterprise Group (PEG). The company reported a slight increase in earnings per share (EPS) for the fourth quarter of 2024, surpassing both consensus and Morgan Stanley’s expectations. This growth was primarily driven by the implementation of new electric and gas distribution base rates and seasonal gas revenue increases.
Looking ahead, PEG’s management has initiated 2025 EPS guidance that aligns closely with market expectations, supported by new distribution rates, investment recovery mechanisms, and a higher rate base. Additionally, PEG has outlined an ambitious five-year capital expenditure plan focused on infrastructure modernization and energy efficiency, which is expected to drive a 5-7% compound annual growth rate in earnings. The company also reported a significant increase in large load inquiries in New Jersey, indicating strong demand and potential for future growth. These factors collectively underpin Arcaro’s optimistic outlook and Buy rating for PEG.
According to TipRanks, Arcaro is a 5-star analyst with an average return of 12.8% and a 59.83% success rate. Arcaro covers the Utilities sector, focusing on stocks such as Ameren, American Electric Power, and Dominion Energy.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $95.00 price target.