Eversource upgraded to Buy from Neutral at UBS

UBS upgraded Eversource to Buy from Neutral with a price target of $67, up from $62. Eversource’s 18% discount valuation on the firm’s 2025 $4.85 EPS forecast ignores the renewed focus on the core delivery business and debt reduction, and instead prices in a 50 basis point reduction to the firm’s EPS growth forecast while ignoring upside capital expenditure opportunities which could represent 0.5% EPS growth upside, the analyst tells investors in a research note. Eversource’s EPS growth could be helped by the announced sale of the Aquarion water utility, the closing of the $1.1B sale for its 50% ownership in the South Fork and Revolution projects, and the closing process detailed for the Sunrise offshore wind project in New York, UBS says.