On Thursday, Goldman Sachs (NYSE:GS) updated its financial outlook for Eversource Energy (NYSE:ES), raising the stock's price target from $73.00 to $74.00 while maintaining a Buy rating. The firm's analysis followed the company's first-quarter earnings for the year 2024, recognizing the potential for growth driven by several factors.
Eversource Energy's leverage to transmission, load growth, and a path to an improved balance sheet were cited as key reasons for the optimistic outlook. Despite acknowledging regulatory challenges in Connecticut, the analysis pointed out that approximately 70% of Eversource's business operates within favorable regulatory jurisdictions, including Federal Energy Regulatory Commission (FERC) transmission and Massachusetts.
Goldman Sachs highlighted Eversource Energy's attractive risk-return profile, especially given the stock's significant underperformance over the past year. The stock is currently valued at a price-to-earnings (P/E) ratio of 12.4x based on the firm's 2025 projections, which is lower than the average P/E ratio of 15.7x for the firm's coverage universe.
The report concluded with a positive outlook, noting a potential 27% total return to the newly revised price target of $74.00 for Eversource Energy shares. This adjustment reflects the firm's confidence in the company's ability to capitalize on its strategic advantages in the energy market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.