Eversource Energy: A Closer Look at Recent Developments
Eversource Energy, a major utility company in the Northeast, is gaining attention from analysts who see a promising future for the company, driven by significant regulatory changes, particularly in Connecticut.
Analyst Upgrade
Bank of America's analyst Ross Fowler recently upgraded Eversource Energy from Neutral to Buy and raised the price target from $73 to $85. This upgrade is fueled by improvements in Connecticut's regulatory environment, making it more favorable for Eversource's operations.
Regulatory Changes in Connecticut
The Public Utilities Regulatory Authority (PURA) in Connecticut has seen a leadership shake-up with new commissioners being appointed. These new leaders are viewed as more balanced and experienced, potentially smoothing the way for Eversource's future endeavors.
Key Events Impacting Growth
- Aquarion Sale: Eversource is proposing the sale of Aquarion, a water company. Even if the sale doesn't go through, the company is expected to try again, indicating a commitment to streamlining operations.
- Yankee Gas Decision: The final order on Yankee Gas, another part of Eversource's business, is pending.
- Storm Cost Recovery: Eversource is working to recover costs from past storms, which could improve their balance sheet and facilitate new projects.
Earnings Forecast
Bank of America has raised its earnings forecasts for Eversource, projecting steady growth over the next few years. The company's financial health is expected to improve, making it a more attractive investment.
Investment Outlook
With Eversource's stock showing upward momentum and positive developments on the horizon, it could be an opportune time for investors to take a closer look. However, as with any investment, it's crucial to conduct thorough research and consider all potential risks.
