Jefferies analyst Paul Zimbardo CFA maintained a Sell rating on Eversource Energy on August 23 and set a price target of $47.00.
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Paul Zimbardo CFA has given his Sell rating due to a combination of factors impacting Eversource Energy. The primary concern is the halt issued by the U.S. Department of Interior on the Revolution Wind project, which poses significant financial liabilities for Eversource. If the project is abandoned, Eversource could face a liability exceeding $745 million, along with a commitment to ensure a 13% pre-tax internal rate of return for Global Infrastructure Partners.
Additionally, the halt reflects broader uncertainties in the offshore wind industry, exacerbated by the Trump Administration’s stance on renewable energy projects. The administration’s focus on energy dominance and skepticism towards wind projects has created an environment of unpredictability, further impacting investor confidence. These factors collectively contribute to the Sell rating, as they present substantial risks to Eversource’s financial outlook and its involvement in offshore wind ventures.
According to TipRanks, Zimbardo CFA is a 3-star analyst with an average return of 6.0% and a 53.33% success rate. Zimbardo CFA covers the Utilities sector, focusing on stocks such as Evergy, Talen Energy Corp, and PPL.