Hawaiian Electric Downgraded to Underperform by Jefferies with $12.50 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Source: seekingalpha
- Rating Downgrade: Jefferies downgraded Hawaiian Electric from Hold to Underperform with a price target cut from $13.50 to $12.50, indicating a diminished market confidence in the stock's future performance amid unresolved issues.
- Valuation Reversion: Although Hawaiian Electric's stock has rebounded from a deep discount to near fair value, the analyst notes that the current valuation has priced in multiple unresolved key issues, reflecting an overly optimistic market outlook on future profitability.
- Lack of Fundamentals: The analyst emphasizes that despite the recent stock price increase, there have been no substantial fundamental changes, leading the market to misinterpret this volatility as a shift in fundamentals, which could mislead investors regarding future risks.
- Future Uncertainty: Ongoing uncertainties surrounding potential wildfire liabilities and the financing of the Maui wildfire litigation settlement obligations remain significant overhangs, posing threats to Hawaiian Electric's financial stability.
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Analyst Views on HE
Wall Street analysts forecast HE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HE is 11.00 USD with a low forecast of 10.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 15.800
Low
10.00
Averages
11.00
High
12.00
Current: 15.800
Low
10.00
Averages
11.00
High
12.00
About HE
Hawaiian Electric Industries, Inc. is a holding company that provides energy services. The Company’s subsidiaries are principally engaged in electric utility and non-regulated renewable/sustainable infrastructure businesses operating in the State of Hawaii. Its electric utility, Hawaiian Electric Company, Inc. (Hawaiian Electric), supplies power to approximately 95% of Hawaii’s population. The Company operates through the electric utility segment. Hawaiian Electric and its operating utility subsidiaries, Hawaii Electric Light Company, Inc. (Hawaii Electric Light) and Maui Electric Company, Limited (Maui Electric), are regulated electric utilities that provide essential electric service to approximately 95% of Hawaii’s population through the operation of five separate grids that serve communities on the islands of Oahu, Hawaii, Maui, Lanai and Molokai. Its subsidiary, Pacific Current, LLC, invests in non-regulated clean energy and sustainable infrastructure in the State of Hawaii.
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.
Hawaiian Electric Downgraded by Jefferies, Price Target Cut to $12.50
- Rating Downgrade: Jefferies analyst Julian Dumoulin-Smith downgraded Hawaiian Electric from buy to underperform, reflecting uncertainty about the company's future, which led to a 2.5% drop in stock price on Tuesday.
- Price Target Adjustment: The analyst cut the price target by $1 to $12.50, indicating a weakening market confidence in Hawaiian Electric, which may affect investor buying decisions.
- Market Uncertainty: The analyst highlighted that Hawaiian Electric faces uncertainties regarding legislative decisions and pricing standards, which diminishes its competitive edge compared to other utility stocks and could lead to further stock price pressure.
- Industry Pressure: With rising concerns about affordability, Hawaiian Electric may experience increased pricing pressure, reflecting challenges faced by the entire utility sector in the current economic environment.
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Analyst Downgrades Hawaiian Electric to Sell, Price Target Reduced to $12.50
- Rating Downgrade: Jefferies analyst Julian Dumoulin-Smith downgraded Hawaiian Electric from buy to sell, reflecting uncertainty about the company's future performance, which led to a 2.5% drop in stock price on Tuesday.
- Price Target Adjustment: The analyst reduced the price target for Hawaiian Electric by $1 to $12.50, indicating a weakening market confidence that may influence investor decisions.
- Legislative Risks: The analyst highlighted significant risks for Hawaiian Electric, including legislative impacts on its funding and pricing capabilities, which could place the company at a disadvantage in a competitive utility market.
- Market Pressure: With rising concerns about affordability in electricity pricing, Hawaiian Electric is not the only utility facing pressure, suggesting broader challenges across the industry regarding pricing strategies.
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