Ross Fowler, an analyst from Bank of America Securities, reiterated the Buy rating on Public Service Enterprise (PEG – Research Report). The associated price target was raised to $93.00.
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Ross Fowler has given his Buy rating due to a combination of factors that highlight Public Service Enterprise Group’s (PEG) strong financial performance and growth prospects. The company reported an increase in adjusted operating EPS for Q1’25 compared to Q1’24, driven by favorable weather conditions, the implementation of new rates, and higher power prices. Despite increased operational and maintenance expenses due to recent capital investments, PEG’s results aligned with consensus estimates, reinforcing confidence in its financial stability.
Furthermore, PEG’s long-term growth outlook remains robust, supported by its commitment to maintaining a 5-7% EPS compound annual growth rate and a 6-7.5% rate base CAGR. The company also plans significant capital expenditures from 2025 to 2029, which are expected to fuel future growth. While there are concerns about rising consumer bills and regulatory scrutiny, PEG’s proactive involvement in consumer education and its strategic positioning to avoid rate cases until 2029 provide a cushion against potential challenges. These factors, along with a price objective increase to $93, underpin Fowler’s Buy rating for PEG.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $92.00 price target.
PEG’s price has also changed slightly for the past six months – from $87.310 to $78.660, which is a -9.91% drop .
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