Public Service Enterprise Group Downgraded by Jefferies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 15 2026
0mins
Source: seekingalpha
Public Service Enterprise Group Inc (PSEG) saw a decline of 3.02% as it hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.21% and the S&P 500 down 0.41%.
The stock's drop follows a downgrade by Jefferies from Buy to Hold, with a price target set at $89. This downgrade was primarily due to reduced confidence in a nuclear data center deal, which has led to diminished investor interest in PSEG's existing assets. Analyst Paul Zimbardo expressed caution regarding the company's ability to secure new projects, particularly in light of concerns over transmission risks that could impact share prices.
This downgrade reflects broader concerns about PSEG's future growth prospects and investor sentiment, particularly as the company navigates challenges in the energy sector and regulatory 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: 79.400
Low
83.00
Averages
89.77
High
98.00
Current: 79.400
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. It 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 direct wholly owned subsidiaries, Public Service Electric and Gas Company (PSE&G) and PSEG Power LLC (PSEG Power). Its segments include PSE&G and PSEG Power. PSE&G segment 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.
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- Extreme Weather Preparedness: While unable to control the weather, PSEG Long Island has enhanced its storm processes to improve its ability to respond to hurricanes and other extreme weather events, which is expected to reduce customer inconvenience due to outages.
- Reliability Commitment: The company is committed to being the most reliable overhead electric service provider in New York State, and through these measures, PSEG Long Island aims to enhance customer satisfaction and strengthen its competitive position in the market.
- Summer Peak Readiness: With summer approaching, PSEG Long Island is prepared to meet the upcoming peak electrical demand, ensuring stable power supply during extreme heat, thus safeguarding the electricity needs of residents and commercial users.
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- Market Volatility Management: Despite significant volatility in the natural gas market last winter, PSE&G effectively mitigated customer costs during peak heating periods by securing gas supplies in advance and monitoring market trends, enhancing economic protection for customers.
- Long-Term Procurement Strategy: PSE&G's strategy of purchasing most of its gas supply months or even years in advance helps reduce exposure to market price spikes, ensuring more predictable bills for customers during the winter months.
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- Long-Term Planning Advantage: Despite market volatility, PSE&G's proactive natural gas procurement and demand forecasting have successfully lowered heating costs for customers, ensuring stability and predictability during the winter heating season.
- Local Supply Assurance: Approximately 90% of PSE&G's gas supply is sourced from the Marcellus Shale region in Pennsylvania, which reduces transportation costs and reliance on distant supply sources, thereby enhancing supply reliability.
- Stable Energy Costs: By strategically storing natural gas, PSE&G can offer stable pricing during peak demand periods, helping customers avoid price spikes caused by market fluctuations and ensuring economical winter heating.
See More
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- Application Period: Applications for the program will be open from June 1 to June 30, 2026, with grants ranging from $500 to $15,000, which is expected to enhance the accessibility and effectiveness of community services.
- Historical Impact: Since its inception in 2014, the program has provided over $9.8 million in funding to 825 organizations across New Jersey and Long Island, with $8.9 million specifically invested in New Jersey, demonstrating ongoing support for local communities.
- Community Collaboration: The PSEG Foundation partners with various nonprofits to enhance economic empowerment and environmental sustainability, ensuring communities receive necessary support and services in the face of rising living costs.
See More
Public Service Enterprise Group Q1 2026 Earnings Highlights
- Strong Financial Performance: Public Service Enterprise Group (PSEG) reported a net income of $1.48 per share and non-GAAP operating earnings of $1.55 per share for Q1 2026, maintaining its full-year non-GAAP operating earnings guidance in the range of $4.28 to $4.40 per share, reflecting confidence in stable earnings.
- Capital Expenditure Plan: PSEG is on track with a capital spending plan of approximately $4.2 billion for 2026, and management's collaboration with the New Jersey government to keep electric rates flat in 2026 not only aids customer affordability but also enhances the company's competitive position in the market.
- Customer Refund Expectations: The anticipated FERC ruling is expected to result in over $100 million in refunds for PSE&G customers, which will directly improve customer billing situations and further enhance customer satisfaction and loyalty.
- Demand Response Program: PSEG's demand response program has enrolled over 32,000 residential and small business customers, showcasing the company's proactive efforts in promoting renewable energy and smart grid initiatives, aimed at improving overall operational efficiency and market adaptability.
See More
PEG Q1 2026 Earnings Call Transcript
See More
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- Grid Enhancements: PSEG Long Island has implemented numerous upgrades to its electric grid and systems, aimed at improving reliability during extreme weather conditions, thereby ensuring better service for customers during hurricane season and peak electrical demand.
- Extreme Weather Preparedness: While unable to control the weather, PSEG Long Island has enhanced its storm processes to improve its ability to respond to hurricanes and other extreme weather events, which is expected to reduce customer inconvenience due to outages.
- Reliability Commitment: The company is committed to being the most reliable overhead electric service provider in New York State, and through these measures, PSEG Long Island aims to enhance customer satisfaction and strengthen its competitive position in the market.
- Summer Peak Readiness: With summer approaching, PSEG Long Island is prepared to meet the upcoming peak electrical demand, ensuring stable power supply during extreme heat, thus safeguarding the electricity needs of residents and commercial users.
See More
PSE&G Announces 5% Reduction in Residential Gas Bills
- Cost Reduction: PSE&G announced a 5% reduction in residential gas heating bills effective October 1, 2026, resulting from the company's long-term planning and operational excellence, ensuring the lowest bills for nearly 1.9 million gas customers in New Jersey.
- Market Volatility Management: Despite significant volatility in the natural gas market last winter, PSE&G effectively mitigated customer costs during peak heating periods by securing gas supplies in advance and monitoring market trends, enhancing economic protection for customers.
- Long-Term Procurement Strategy: PSE&G's strategy of purchasing most of its gas supply months or even years in advance helps reduce exposure to market price spikes, ensuring more predictable bills for customers during the winter months.
- Local Supply Advantage: By sourcing approximately 90% of its residential gas from the Marcellus Shale region in Pennsylvania, PSE&G benefits from lower transportation costs and increased reliability, reducing risks associated with disruptions from distant supply sources.
See More
PSE&G Announces 5% Reduction in Residential Gas Bills
- Cost Reduction: PSE&G announced a 5% reduction in residential gas heating bills effective October 1, 2026, benefiting nearly 1.9 million customers in New Jersey and reinforcing the company's position as the lowest-cost provider in the state.
- Long-Term Planning Advantage: Despite market volatility, PSE&G's proactive natural gas procurement and demand forecasting have successfully lowered heating costs for customers, ensuring stability and predictability during the winter heating season.
- Local Supply Assurance: Approximately 90% of PSE&G's gas supply is sourced from the Marcellus Shale region in Pennsylvania, which reduces transportation costs and reliance on distant supply sources, thereby enhancing supply reliability.
- Stable Energy Costs: By strategically storing natural gas, PSE&G can offer stable pricing during peak demand periods, helping customers avoid price spikes caused by market fluctuations and ensuring economical winter heating.
See More
PSEG Foundation's 2026 Community Assistance Program Launches
- Funding Allocation: The PSEG Foundation will allocate $1.2 million in its 2026 Neighborhood Partners Program to support nonprofits providing utility assistance, food support, and critical community services, aiming to help families and communities access essential resources.
- Application Period: Applications for the program will be open from June 1 to June 30, 2026, with grants ranging from $500 to $15,000, which is expected to enhance the accessibility and effectiveness of community services.
- Historical Impact: Since its inception in 2014, the program has provided over $9.8 million in funding to 825 organizations across New Jersey and Long Island, with $8.9 million specifically invested in New Jersey, demonstrating ongoing support for local communities.
- Community Collaboration: The PSEG Foundation partners with various nonprofits to enhance economic empowerment and environmental sustainability, ensuring communities receive necessary support and services in the face of rising living costs.
See More
Public Service Enterprise Group Q1 2026 Earnings Highlights
- Strong Financial Performance: Public Service Enterprise Group (PSEG) reported a net income of $1.48 per share and non-GAAP operating earnings of $1.55 per share for Q1 2026, maintaining its full-year non-GAAP operating earnings guidance in the range of $4.28 to $4.40 per share, reflecting confidence in stable earnings.
- Capital Expenditure Plan: PSEG is on track with a capital spending plan of approximately $4.2 billion for 2026, and management's collaboration with the New Jersey government to keep electric rates flat in 2026 not only aids customer affordability but also enhances the company's competitive position in the market.
- Customer Refund Expectations: The anticipated FERC ruling is expected to result in over $100 million in refunds for PSE&G customers, which will directly improve customer billing situations and further enhance customer satisfaction and loyalty.
- Demand Response Program: PSEG's demand response program has enrolled over 32,000 residential and small business customers, showcasing the company's proactive efforts in promoting renewable energy and smart grid initiatives, aimed at improving overall operational efficiency and market adaptability.
See More
PEG Q1 2026 Earnings Call Transcript
See More
