Analyst Alex Kania from BTIG maintained a Buy rating on Public Service Enterprise and keeping the price target at $98.00.
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Alex Kania has given his Buy rating due to a combination of factors that highlight the strong performance and future potential of Public Service Enterprise Group (PEG). The company exceeded expectations in its third-quarter earnings, reporting an operating EPS of $1.13, which surpassed both BTIG and consensus estimates. This performance was driven by new electric and gas rates, despite higher operational and maintenance expenses. Additionally, PEG has narrowed its 2025 EPS guidance to the upper half of the range, demonstrating confidence in its growth trajectory.
Another factor contributing to the Buy rating is the significant increase in large load inquiries, particularly from data center customers, indicating robust demand for PEG’s services. The extension of the Long Island Power Authority contract further solidifies PEG’s operational stability. Although the outcome of the New Jersey gubernatorial election remains uncertain, management’s optimism about maintaining a constructive relationship with either candidate adds to the positive outlook. The valuation approach, using a sum-of-the-parts basis with updated EPS estimates, supports a price target of $98, reinforcing the Buy recommendation.
In another report released on October 22, Morgan Stanley also maintained a Buy rating on the stock with a $109.00 price target.