James Thalacker, an analyst from BMO Capital, has initiated a new Hold rating on Public Service Enterprise (PEG).
James Thalacker has given his Hold rating due to a combination of factors related to Public Service Enterprise’s financial performance and market position. The company has shown a steady earnings outlook, achieving an EPS of $3.68, which aligns closely with both BMO and consensus estimates. Additionally, the management’s guidance for 2025 suggests a modest growth trajectory, with an EPS range of $3.94-4.06, which is slightly below BMO’s and consensus expectations.
Despite the company’s plans to increase its capital expenditure significantly, the rate base CAGR remains unchanged, which may not align with the upward revisions seen among its peers in the utility sector. Furthermore, while there is potential for economic development and increased demand in New Jersey, the lack of detailed information on potential long-term contracts adds uncertainty. Given these factors, along with the stock trading at a premium relative to its growth rate compared to peers, Thalacker maintains a Market Perform rating based on valuation considerations.
According to TipRanks, Thalacker is a 5-star analyst with an average return of 14.3% and a 68.35% success rate. Thalacker covers the Utilities sector, focusing on stocks such as Ameren, PG&E, and American Electric Power.