Utilities Ratings Adjusted by Evercore ISI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: seekingalpha
- PEG Rating Upgrade: Evercore ISI upgraded Public Service Enterprise Group (PEG) from In Line to Outperform with a price target of $96, driven by its predominantly regulated earnings mix and favorable New Jersey regulatory frameworks, projecting a 10% year-over-year growth in adjusted operating earnings to $4.05 per share for FY 2025, indicating strong growth potential.
- Southern Company Outlook: Evercore ISI raised Southern Company (SO) to Outperform with a target price of $111, as the analyst believes the stock is poised to break out to all-time highs due to its favorable regulatory environment and enhanced capital plan, making it a core holding for utility investors.
- Duke Energy Downgrade: Despite a positive outlook on Duke Energy's (DUK) growth potential due to its premium service territory and significant load growth pipeline, Evercore ISI downgraded the stock from Outperform to In Line with a price target of $139, reflecting a 15% appreciation since December, suggesting a pause in investment.
- Industry Dynamics Analysis: Analyst Nicholas Amicucci noted that while approximately 90% of Duke Energy's electric capex is eligible for efficient-recovery mechanisms, the current stock price has already priced in some growth expectations, highlighting the relative advantages of PEG and Southern Company in the current market environment.
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Analyst Views on PEG
Wall Street analysts forecast PEG stock price to rise
12 Analyst Rating
8 Buy
4 Hold
0 Sell
Moderate Buy
Current: 84.040
Low
83.00
Averages
89.77
High
98.00
Current: 84.040
Low
83.00
Averages
89.77
High
98.00
About PEG
Public Service Enterprise Group Incorporated is a regulated infrastructure company operating New Jersey’s transmission and distribution utility, serving approximately 2.4 million electric and 1.9 million natural gas customers. The Company also owns an independent fleet of 3,758 MW of carbon-free, baseload nuclear power-generating units. The Company principally conducts its business through two wholly owned subsidiaries, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (PSEG Power). The Company’s segments include PSE&G and PSEG Power. PSE&G is a public utility engaged principally in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSEG Power is an energy supply company that consists of the operations of merchant nuclear generating assets and fuel supply functions engaged in competitive energy sales via its principal direct wholly owned subsidiaries. The Company also has other wholly owned subsidiaries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Utilities Ratings Adjusted by Evercore ISI
- PEG Rating Upgrade: Evercore ISI upgraded Public Service Enterprise Group (PEG) from In Line to Outperform with a price target of $96, driven by its predominantly regulated earnings mix and favorable New Jersey regulatory frameworks, projecting a 10% year-over-year growth in adjusted operating earnings to $4.05 per share for FY 2025, indicating strong growth potential.
- Southern Company Outlook: Evercore ISI raised Southern Company (SO) to Outperform with a target price of $111, as the analyst believes the stock is poised to break out to all-time highs due to its favorable regulatory environment and enhanced capital plan, making it a core holding for utility investors.
- Duke Energy Downgrade: Despite a positive outlook on Duke Energy's (DUK) growth potential due to its premium service territory and significant load growth pipeline, Evercore ISI downgraded the stock from Outperform to In Line with a price target of $139, reflecting a 15% appreciation since December, suggesting a pause in investment.
- Industry Dynamics Analysis: Analyst Nicholas Amicucci noted that while approximately 90% of Duke Energy's electric capex is eligible for efficient-recovery mechanisms, the current stock price has already priced in some growth expectations, highlighting the relative advantages of PEG and Southern Company in the current market environment.
See More
Public Service Enterprise Group Rating Upgrade
- Rating Status: Public Service Enterprise Group (PEG) currently holds an average rating of overweight, indicating analysts' optimistic outlook on its future performance, which may attract more investor attention.
- Price Target: While the average price target for PEG is not disclosed, the overweight rating typically suggests analysts' confidence in potential stock price appreciation, which could influence market investment decisions regarding the stock.
- Market Reaction: The rating upgrade may lead to a short-term increase in PEG's stock price, boosting investor confidence and enhancing the company's market position in the public service sector.
- Investment Strategy: Analysts' overweight rating suggests that PEG may be viewed as a priority choice in future investment portfolios, reflecting its competitive advantages and growth potential within the industry.
See More
Trump Pushes Energy Commitment from Data Centers
- Political Commitment: In his State of the Union address, Trump mentioned securing a pledge from major tech companies to supply power for data centers, although details remain unclear, this could impact future electricity supply and cost structures.
- Growing Power Demand: NextEra Energy plans to build 15 gigawatts of new power capacity to meet data center demands, indicating a shift towards gas generation while emphasizing renewable energy, reflecting changing policy directions.
- Market Dynamics: With accelerated data center construction, the U.S. is expected to face a net negative power supply by 2029, tightening the electricity market and boosting market share for independent power producers.
- Investment Opportunities: Wells Fargo has named Constellation Energy as its top pick among independent power producers, projecting a 40% stock price increase, while other independent producers like NRG and Talen are also viewed positively, indicating optimistic sentiment towards data center-related investments.
See More
Public Service Enterprise Group Q4 2025 Earnings Highlights
- Strong Earnings Performance: Public Service Enterprise Group (PSEG) reported a net income of $0.63 per share for Q4 2025 and $4.22 per share for the full year, with non-GAAP operating earnings at $0.72, demonstrating robust performance during severe winter weather and boosting investor confidence.
- Significant Dividend Increase: The company announced an increase in its annual dividend to $2.68 per share, up $0.16 from the previous year, representing a 6% rise, which not only reflects improved profitability but also enhances shareholder returns.
- Expanded Capital Program: PSEG updated its capital program for 2026-2030 to a range of $24 billion to $28 billion, with over 90% allocated to regulated investments, supporting a rate base CAGR of 6% to 7.5%, indicating strong confidence in future growth.
- Optimistic Outlook: Management projects non-GAAP operating earnings for 2026 to be between $4.28 and $4.40 per share, a 7% increase at the midpoint over 2025 results, and raised the long-term non-GAAP operating earnings growth outlook to 6% to 8%, reflecting strong cash flows from nuclear and regulated investments.
See More
PSEG (PEG) Q4 2025 Earnings Call Transcript
See More
Public Service Enterprise Reports Strong Q4 Earnings and 2026 Outlook
- Earnings Beat: Public Service Enterprise Group (PSEG) reported a Q4 non-GAAP EPS of $0.72, beating estimates by $0.01, with revenue of $2.92 billion reflecting an 18.2% year-over-year increase, surpassing expectations by $50 million, indicating robust market performance.
- 2026 Outlook: PSEG initiated its 2026 non-GAAP operating earnings guidance in the range of $4.28 to $4.40 per share, representing over a 7% increase at the midpoint compared to 2025 results, showcasing confidence in future profitability.
- Capital Spending Plan: The company's capital spending plan for 2026-2030 is projected to be between $24 billion and $28 billion, with $22.5 billion to $25.5 billion allocated for regulated investments, highlighting ongoing infrastructure investments.
- Dividend Increase: PSEG raised its 2026 indicative annual common dividend by $0.16 to $2.68 per share, marking the 15th consecutive annual increase, demonstrating a commitment to returning value to shareholders while achieving earnings growth.
See More
Utilities Ratings Adjusted by Evercore ISI
- PEG Rating Upgrade: Evercore ISI upgraded Public Service Enterprise Group (PEG) from In Line to Outperform with a price target of $96, driven by its predominantly regulated earnings mix and favorable New Jersey regulatory frameworks, projecting a 10% year-over-year growth in adjusted operating earnings to $4.05 per share for FY 2025, indicating strong growth potential.
- Southern Company Outlook: Evercore ISI raised Southern Company (SO) to Outperform with a target price of $111, as the analyst believes the stock is poised to break out to all-time highs due to its favorable regulatory environment and enhanced capital plan, making it a core holding for utility investors.
- Duke Energy Downgrade: Despite a positive outlook on Duke Energy's (DUK) growth potential due to its premium service territory and significant load growth pipeline, Evercore ISI downgraded the stock from Outperform to In Line with a price target of $139, reflecting a 15% appreciation since December, suggesting a pause in investment.
- Industry Dynamics Analysis: Analyst Nicholas Amicucci noted that while approximately 90% of Duke Energy's electric capex is eligible for efficient-recovery mechanisms, the current stock price has already priced in some growth expectations, highlighting the relative advantages of PEG and Southern Company in the current market environment.
See More
Public Service Enterprise Group Rating Upgrade
- Rating Status: Public Service Enterprise Group (PEG) currently holds an average rating of overweight, indicating analysts' optimistic outlook on its future performance, which may attract more investor attention.
- Price Target: While the average price target for PEG is not disclosed, the overweight rating typically suggests analysts' confidence in potential stock price appreciation, which could influence market investment decisions regarding the stock.
- Market Reaction: The rating upgrade may lead to a short-term increase in PEG's stock price, boosting investor confidence and enhancing the company's market position in the public service sector.
- Investment Strategy: Analysts' overweight rating suggests that PEG may be viewed as a priority choice in future investment portfolios, reflecting its competitive advantages and growth potential within the industry.
See More
Trump Pushes Energy Commitment from Data Centers
- Political Commitment: In his State of the Union address, Trump mentioned securing a pledge from major tech companies to supply power for data centers, although details remain unclear, this could impact future electricity supply and cost structures.
- Growing Power Demand: NextEra Energy plans to build 15 gigawatts of new power capacity to meet data center demands, indicating a shift towards gas generation while emphasizing renewable energy, reflecting changing policy directions.
- Market Dynamics: With accelerated data center construction, the U.S. is expected to face a net negative power supply by 2029, tightening the electricity market and boosting market share for independent power producers.
- Investment Opportunities: Wells Fargo has named Constellation Energy as its top pick among independent power producers, projecting a 40% stock price increase, while other independent producers like NRG and Talen are also viewed positively, indicating optimistic sentiment towards data center-related investments.
See More
Public Service Enterprise Group Q4 2025 Earnings Highlights
- Strong Earnings Performance: Public Service Enterprise Group (PSEG) reported a net income of $0.63 per share for Q4 2025 and $4.22 per share for the full year, with non-GAAP operating earnings at $0.72, demonstrating robust performance during severe winter weather and boosting investor confidence.
- Significant Dividend Increase: The company announced an increase in its annual dividend to $2.68 per share, up $0.16 from the previous year, representing a 6% rise, which not only reflects improved profitability but also enhances shareholder returns.
- Expanded Capital Program: PSEG updated its capital program for 2026-2030 to a range of $24 billion to $28 billion, with over 90% allocated to regulated investments, supporting a rate base CAGR of 6% to 7.5%, indicating strong confidence in future growth.
- Optimistic Outlook: Management projects non-GAAP operating earnings for 2026 to be between $4.28 and $4.40 per share, a 7% increase at the midpoint over 2025 results, and raised the long-term non-GAAP operating earnings growth outlook to 6% to 8%, reflecting strong cash flows from nuclear and regulated investments.
See More
PSEG (PEG) Q4 2025 Earnings Call Transcript
See More
Public Service Enterprise Reports Strong Q4 Earnings and 2026 Outlook
- Earnings Beat: Public Service Enterprise Group (PSEG) reported a Q4 non-GAAP EPS of $0.72, beating estimates by $0.01, with revenue of $2.92 billion reflecting an 18.2% year-over-year increase, surpassing expectations by $50 million, indicating robust market performance.
- 2026 Outlook: PSEG initiated its 2026 non-GAAP operating earnings guidance in the range of $4.28 to $4.40 per share, representing over a 7% increase at the midpoint compared to 2025 results, showcasing confidence in future profitability.
- Capital Spending Plan: The company's capital spending plan for 2026-2030 is projected to be between $24 billion and $28 billion, with $22.5 billion to $25.5 billion allocated for regulated investments, highlighting ongoing infrastructure investments.
- Dividend Increase: PSEG raised its 2026 indicative annual common dividend by $0.16 to $2.68 per share, marking the 15th consecutive annual increase, demonstrating a commitment to returning value to shareholders while achieving earnings growth.
See More
