PSEG downgraded to Neutral from Buy at Seaport Research

Seaport Research downgraded PSEG to Neutral from Buy. The firm notes that the stock has fully recovered after an earnings reset at the 2022 EEI financial conference. Investors accepted PSEG’s decision to keep its nuclear plants given its improved earnings visibility granted by the IRA. Better yet, Seaport no longer sees much, if any, price-to-earning discount for PSEG’s nuclear earnings versus its regulated earnings. The question remains if NJ is a premium regulatory jurisdiction, the firm adds, noting that “we are more than a year away from answering this question with certainty” given PSEG’s upcoming distribution rate case in the state.