Nicholas Amicucci, an analyst from Evercore ISI, has initiated a new Hold rating on Nisource (NI).
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Nicholas Amicucci has given his Hold rating due to a combination of factors influencing NiSource’s current market position. The company’s shares are trading at a premium compared to the broader sector, suggesting that its growth prospects are already reflected in the current estimates. Despite the clear long-term potential within NiSource’s service regions, regulatory pressures, particularly in Indiana, pose a risk to the company’s growth trajectory.
Furthermore, while the approval from the Indiana Utility Regulatory Commission for NIPSCO Generation’s petition offers some upside potential, the market has already priced in the expected benefits from upcoming projects. The valuation approach used by Amicucci applies a relative multiple to an implied XLU reference multiple, leading to a price target that suggests only a modest upside. Consequently, these factors collectively contribute to the Hold rating, indicating a cautious stance given the current valuation and regulatory environment.
According to TipRanks, Amicucci is a 5-star analyst with an average return of 62.0% and a 94.44% success rate. Amicucci covers the Utilities sector, focusing on stocks such as Talen Energy Corp, Centerpoint Energy, and Consolidated Edison.
In another report released on September 23, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $45.00 price target.