Jefferies Raises Price Target#

Jefferies has increased its price target for NiSource Inc. (NYSE:NI) from $53 to $55, while maintaining a Buy rating on the utility company's shares. Currently, NiSource's stock trades at $47.78, close to its 52-week high of $48.83, and has seen a 28.8% increase over the past year.

Earnings Estimates and GenCo Updates#

Following announcements related to GenCo, Jefferies has raised its earnings estimates by 1% to 3%. The firm anticipates more clarity on the company's earnings during the first-quarter earnings call. Notably, a new agreement with Google is expected to add 6 cents to the earnings per share (EPS) by 2029, while GenCo's adjustments could contribute an additional 1 to 2 cents in the years 2028 to 2030. This leads to an estimated compound annual growth rate for EPS of 9.6% from 2026 to 2030, slightly above the previous estimate of 9.2%.

Dividend and Financial Outlook#

Jefferies projects first-quarter 2026 earnings per share at $1.06, slightly above the consensus estimate of $1.05. The firm has identified affordability as a manageable concern in the near term, with a report from the Indiana Utility Regulatory Commission in June expected to be a significant factor for utilities in Indiana. NiSource has a strong track record, having increased its dividend for nine consecutive years, currently offering a yield of 2.51%.

Strategic Agreements and Analyst Ratings#

Recently, NiSource announced strategic energy infrastructure agreements with subsidiaries of Alphabet Inc. and Amazon Data Services, aimed at supporting data center development in Indiana. The service for Alphabet is expected to start in the summer of 2026. Additionally, NiSource has expanded its agreement with Amazon to expedite site energization and customer credits. In terms of analyst activity, BMO Capital has raised its price target for NiSource to $51, while KeyBanc initiated coverage with an overweight rating and a price target of $52. These updates reflect the company's ongoing strategic initiatives and market evaluations by financial analysts.