Overview#
BofA Securities has adjusted its price target for Eversource Energy (NYSE:ES) from $73 to $72 while keeping a Buy rating on the stock. This change comes as analyst Ross Fowler noted the influence of mark-to-market peer multiples on the adjustment. Currently, Eversource Energy's stock trades at $67.05, giving the company a market capitalization of $25.19 billion.
Earnings Estimates#
For the first quarter of 2026, BofA estimates adjusted earnings per share (EPS) at $1.58, an increase from $1.50 in the first quarter of 2025, but slightly below the consensus estimate of $1.60. The company has a price-to-earnings (P/E) ratio of 14.7 and a low price/earnings to growth (PEG) ratio of 0.15, indicating it may be undervalued compared to its growth potential. The increase in year-over-year earnings is primarily driven by Natural Gas Distribution, which contributed $0.15, thanks to new rates from Yankee Gas and other factors.
Factors Affecting Earnings#
Electric Transmission and Electric Distribution each added $0.04 to the quarterly earnings gain. However, the Parent & Other segment reduced earnings by $0.15 due to higher interest expenses and a slightly increased effective tax rate. BofA has revised its earnings estimates for fiscal years 2026 to 2028, accounting for a 100 basis point drag on return on equity (ROE) from regulatory changes, but expects a recovery in ROE starting in 2027.
Price Target Rationale#
The new price target of $72 is based on peer multiples for electric, gas, and water sectors, suggesting a potential total return of 12.4% for shareholders. Eversource Energy also offers a dividend yield of 4.71% and has consistently increased its dividend for 27 years. Recent reports show Eversource's strong financial performance, with non-GAAP earnings rising in the fourth quarter of 2025 and full-year earnings increasing from the previous year. Other financial firms have also adjusted their price targets for Eversource, reflecting ongoing regulatory challenges.