Public Service Enterprise, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst David Arcaro from Morgan Stanley maintained a Buy rating on the stock and has a $100.00 price target.
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David Arcaro has given his Buy rating due to a combination of factors that suggest a promising outlook for Public Service Enterprise Group (PEG). One key factor is the potential for a data center deal involving PEG’s nuclear plants, which could be finalized by the end of the year. This deal is supported by the attractive location of the offshore wind port and the active engagement of state leadership in attracting data centers to New Jersey. Such a deal could provide significant value, especially if a collocated data center is established, offering competitive pricing and flexibility in terms of location and contract terms.
Additionally, PEG’s efforts to stabilize customer bills contribute to a positive outlook. The company’s summer relief initiative, which includes credits to customer bills and a moratorium on utility shutoffs, aims to mitigate the impact of price increases. Furthermore, the anticipated results of the upcoming PJM auction suggest limited impact on customer bills, reducing affordability concerns. With these strategic initiatives and market conditions, PEG is positioned to maintain stability and potentially enhance its financial performance, justifying the Buy rating.
In another report released on July 17, J.P. Morgan also maintained a Buy rating on the stock with a $94.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PEG in relation to earlier this year.