Citi analyst Ryan Levine has maintained their neutral stance on ES stock, giving a Hold rating on October 16.
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Ryan Levine’s rating is based on a combination of factors related to Eversource Energy’s recent activities and financial outlook. The company has been involved in the sale of Aquarion, which has seen a modified offer of compromise that addresses several concerns raised by the consumer advocate OCC. This includes adjustments in documentation, accounting, and capital-project approval thresholds, which may enhance the chances of a favorable decision from PURA.
Additionally, Levine notes that while the transaction price for Aquarion is low, resulting in a $300 million loss for Eversource, there are potential long-term benefits. Customers might experience lower costs of capital for future investments, potentially saving $365 million over the next decade. Despite these prospects, the expected share price return is negative, at -3.3%, which contributes to the Hold rating as the stock may not offer significant upside potential in the near term.
Levine covers the Utilities sector, focusing on stocks such as PG&E, Consolidated Edison, and DTE Energy. According to TipRanks, Levine has an average return of 8.1% and a 67.35% success rate on recommended stocks.
In another report released on October 16, TD Cowen also initiated coverage with a Hold rating on the stock with a $76.00 price target.